Abstract:According to most scholars in the field, stakeholder theory is not a special theory on a firm's constituencies but sets out to replace today's prevailing neoclassical economic concept of the firm. Though stakeholder theory explicitly is a theory on a private sector entity, some scholars apply it to public sector organizations. This paper summarizes stakeholder theory, discusses its premises and justifications, compares its tracks, sheds light on recent attempts to join the two tracks, and discusses the benefits and limits of its practical applicability to the public sector using the case of a recent New York State eGovernment initiative.
In the early 21st century, societies and their governments around the world have been meeting unprecedented challenges, many of which surpass the capacities, capabilities, and reaches of their traditional institutions and their classical processes of governing. Among these challenges are the need for an accelerated transition of the global economy from its current fossil fuel basis to renewable energies, the so-called post-carbon era also known as the third industrial revolution, the containment and reduction of government spending and debt financing, the increasing rapidity of market changes, and the expanding lag of timely interventions via traditional lawmaking and government action. While upholding the proven principles of Western democracy, democratic self-governance in 21st century market economies apparently needs to develop new institutional formats and novel mechanisms for staying abreast with the systemic dynamics of a tightly interconnected global society. We claim that actionable and omnipresent information along with its underlying technologies are substantial prerequisites and backbones for developing models of smart (democratic) governance, which foster smart, open, and agile governmental institutions as well as stakeholder participation and collaboration on all levels and in all branches of the governing process. We present and discuss an agenda for research and practice, which advances the concept of smart, open, and participatory government of the 21st century.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.