Vinit M. Desai
Journal of Leadership & Organizational Studies, Volume 17 Issue 3, pp. 264-275
Although research suggests that organizations learn through interactions with stakeholders, little is known regarding how this process occurs. The author addresses this void by examining how the power, legitimacy, or urgency related to stakeholders’ interactions influence organizations’ abilities to learn from these interactions. Hypothesis tests on a panel of nursing homes suggest that organizations learn more effectively through interactions with powerful stakeholders or those whose feedback requires immediate response. Findings contribute to organizational learning theory by identifying how different forms of experience vary substantially in their impacts on organizational activity. Related implications for stakeholder management and managerial practice are also discussed.