Stakeholder engagement strategies for impactful corporate social innovation initiatives by multinational enterprises

Abstract

Research on corporate social innovations (CSI) acknowledges the tensions caused by different stakeholder expectations but is silent on the strategies multinational enterprises (MNEs) adopt to address these tensions. We advance a configurational perspective that recognizes the interdependencies between stakeholder engagement, dynamic capabilities and impactful CSIs. We develop a framework of stakeholder engagement strategies delineating how MNEs manage tradeoffs between conforming to internal stakeholder expectations through strategic intent and being inclusive by routinizing CSIs. The analysis draws on 32 cases of CSI aimed at reducing inequality and enhancing sustainability. These cases were initiated by MNEs headquartered in North America, Africa, Europe, the UK and Australia. We identify combinations of engagement strategies and dynamic capabilities linked to impactful CSI. Our findings highlight the multiple ways in which MNEs can manage different stakeholder preferences to achieve societal impact.