Framework

Corporate diplomacy as a dynamic capability

The question it answers

When a project meets pushback from communities, regulators or partners, how should a CEO sense, respond to and keep adapting to stakeholders, not just run “external affairs”?

Origin
Henisz, 2016; Teece, 2007
Diagram type
Cycle
Level of analysis
Firm
Topics
Strategy & leadershipBusiness consulting
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Diagram

Corporate diplomacy as a dynamic capability

  1. Sense and shapeSenior managers from several functions meet outside stakeholders themselves, and stakeholder issues are linked to the numbers that drive revenue and cost.
  2. Mitigate and seizeAdapt operations, marketing, HR or finance, then explain actions to stakeholders in a way that builds trust.
  3. Keep adaptingRefresh the stakeholder data on a regular cycle (the author suggests every one to three years) and update the response.

Sources

References

Listed A–Z by author surname, Harvard style. A source with a DOI links to https://doi.org/…; one without links to its page or says plainly that it has no DOI.

  1. Asquer, A. (2012) ‘What is corporate diplomacy? And why does it matter?’, Journal of Multidisciplinary Research, 4(3), pp. 53–63.No DOIdoi.orgSource page
  2. Bolewski, W. (2018) ‘Corporate diplomacy as global management’, International Journal of Diplomacy and Economy, 4(2), pp. 107–138.doi:10.1504/ijdipe.2018.094089Source page
  3. Henisz, W.J. (2016) ‘The dynamic capability of corporate diplomacy’, Global Strategy Journal, 6(3), pp. 183–196.doi:10.1002/gsj.1121Source page
  4. Teece, D.J. (2007) ‘Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance’, Strategic Management Journal, 28(13), pp. 1319–1350.doi:10.1002/smj.640Source page