Revisiting Stakeholder Value Creation: A Systemic Reframing

Value creation processes differentiate firms and provide enduring advantages. Central to this process is managing stakeholder relationships, especially when negotiating, co-creating and distributing value, an endeavour with significant challenges, such as optimization of value creation without trade-offs amid complex and interdependent relationships. While stakeholder relationships are often recognized as crucial, existing theories inadequately address how interconnected exchanges influence the value created. To this end, we propose a framework that integrates stakeholder theory with systems theory, focusing on primary stakeholders. Our aim is to: (a) identify key stakeholder value concepts, (b) describe relationship dynamics initiated by stakeholders and (c) outline systemic processes that enable value creation. Stakeholder-driven value creation involves several interconnected activities and practices that reflect an organizational commitment to stakeholder well-being, for example, through employee-focused initiatives such as training, healthcare and the recognition of human capital. Furthermore, we suggest that collaborative value creation can be framed more clearly by emphasizing how organizations navigate interdependent stakeholder expectations through routines that promote fairness and mutual gain. This integrated approach advances stakeholder and systems theories by clarifying how relational dynamics enable value creation. For managers, these insights offer strategic guidance for developing stakeholder-oriented practices that align ethical commitments with performance.