Stakeholder and Social Network Analysis

Abstract

The ideas of stakeholder and social network analysis are linked in the domains of organizational management and social sciences. The act of identifying and assessing the people, organizations, or groups that have an interest or stake in a specific project, solution, or decision is known as stakeholder analysis. This enables companies to interact with various stakeholders and understand their needs, objectives, and impacts.

Contrarily, social network analysis is the study of the connections and interactions among people, groups, or organizations inside a network. This means identifying the relationships between people, figuring out which the major influences are, and recognizing the information, power, and influence flow within a network.

On the other hand, organizations can gain a thorough understanding of their stakeholders and the connections among them by combining stakeholder and social network analysis. Making informed decisions, better communication, and creating efficient stakeholder engagement strategies are all possible with the use of this information. Organizations can be able to target better their engagement activities and increase the likelihood of success, for instance, by identifying important influences within a stakeholder network.

In conclusion, by these two concepts, industries will have the opportunity to recognize and improve the relationships between their stakeholders. In addition, stakeholder and social network analysis are valuable tools for businesses to identify their stakeholders’ needs and improve their relationships. By establishing effective communications and building strong bonds between them, organizations will achieve an efficient environment between them in order to develop effective methods and strategies.

Introduction

Stakeholder analysis and social network analysis are two effective methods for figuring out how people or groups relate to one another inside a company or project. Stakeholder analysis helps to identify the people or organizations with a stake in an organization or a project. Customers, staff members, suppliers, shareholders, members of the community, and others who are impacted by the organization's activities or decisions can all be considered stakeholders. On the other hand, social network analysis is a tool used to comprehend the connections and relationships between people or groups within a network. Organizations can better understand how to interact and communicate with various groups, spot possible conflicts or problems, and create plans to handle them by examining the social network of stakeholders.

Basic Stakeholder Analysis

The goal of basic stakeholder analysis is to determine how each actor's influence affects the project's outcome. This is done through a desk review, a participatory internal meeting or workshop. In essence, it seeks to address the questions of who the actor is and how they could affect a project's outcome.

Steps of Basic Stakeholder Analysis:

• Preparation

1. Define the Outcome Question

2. Preparatory Desk Review

• Meeting/Workshop

3. List and categorize the actors

4. Quantify the level and type of influence of each actor

5. Analysis to action

In the literature on organizational studies and management, a variety of stakeholder management methodologies have been proposed for both the identification and study of stakeholders. The traditional model, which Freeman (1984) first presented, uses an organization-centric approach and demonstrates how the company must manage interactions between primary and secondary stakeholders in the value creation process, as shown in Fig. 1.

Fig 1. Value creation for Stakeholders

Social Network Analysis

Social network analysis (SNA) is the process of mapping these relationships, and analyzing the structure of the network and the influence of different actors.

•Identify which actors are involved in a network. •How they are linked •How influential each actor is. •What their motivations are •How the network is structured

Combining SNA and stakeholder management

Prioritizing a stakeholder's impact on the outcomes of a specific organization or activity based on the possession of characteristics is one of the conventional approaches to stakeholder analysis (such as power, legitimacy, urgency, knowledge, interest and so on). SNA offers an alternative method for determining a stakeholder's level of influence based on centrality measurements and position within a network. Both strategies delivered extremely comparable results.

However, a few of scholars disagree with treating the two methods independently, believing that SNA should be integrated with stakeholder management to enhance its outcomes rather than yielding brand-new, comparable outcomes.

Analysis to Action

Effectiveness: Can a collaboration benefit from local knowledge, networks, and skills to enhance the efficacy of IRC's interventions?

Size and Reach: Can a partnership's reach grow as a result of community acceptability and access?

Best Use of Resources: Can a partnership maximize value for money by using already-existing resources and capabilities rather than duplicating and undermining them?

Speed and Timeliness: Can a collaboration provide a speedier and more adaptable reaction in terms of speed and timeliness?

Responsiveness: Can a collaboration more effectively address the needs and objectives of the communities?

Operational Feasibility: How feasible is partnering compared to providing services directly (can IRC quickly create operational capability, are there finance limitations, does IRC need to establish new partnerships, etc.)?

Opportunities

1. Friends in high places

2. Support

3. Building networks within the network

4. Critical relationship building

Risks

1. Spoilers

2. Quiet Saboteurs

3. Dysfunctional/ Conflicting relationships

Conclusion

Stakeholder analysis and social network analysis are two significant techniques that organizations can use better to understand their stakeholders and the dynamics of their environment. With stakeholder analysis, requirements, expectations, interests, and influence over a situation are discovered and evaluated. This study helps businesses better understand how their actions and decisions affect their stakeholders and helps them identify potential issues or opportunities that may arise. Finding stakeholders, assessing their requirements, expectations, and interests, and determining the level of influence they have over the project or organization are all parts of stakeholder analysis. On the other side, social network analysis is a technique for studying and mapping interpersonal connections and interactions. It aids organizations in having a better understanding of how information is distributed and how power is used within a team or company. Through social network analysis, it is possible to pinpoint important people or organizations that serve as middlemen, spread ideas or information, or may exert disproportionate influence over decision-making. Organizations can better manage communication and cooperation, as well as spot chances for partnerships or collaboration, by knowing the relationships between stakeholders. Overall, organizations can gain a deeper understanding of their stakeholders and the dynamics of their environment by combining stakeholder and social network analysis. By utilizing these techniques, firms may more effectively manage their stakeholder relationships, foresee opportunities or obstacles, and modify their strategy as necessary. These assessments should be evaluated frequently to stay current with shifting dynamics because they are not a one-time event. Stakeholder and social network analysis are useful techniques that organizations may utilize to accomplish their goals and objectives while upholding their stakeholders’ relationships more effectively.