Driving value through stakeholder relationships – a discussion using a research-based model

Many believe that innovation offers opportunities to create wealth through innovation in the form of new services and new technologies, an aspiration often not realised in practice. Nonetheless, organisations do possess unique advantages for governing certain types of economic activity through a logic very different from that of the market. This paper suggests that governing and guiding this 'organisational economy' of many and various stakeholders is essential to creating significant value from innovation, and that governance structures should be chosen which align with the economic character of the organisation. This paper considers relationships between wealth creation through innovation, choices of governance structure and the nature of the organisation's relationships with its stakeholders. To inform the discussion, the paper draws on analysis and findings from recent applied doctoral research at Henley Management College into the creation of significant economic change in complex organisations which have a high dependence on technology.