ABSTRACT
Stakeholder management is a crucial factor in firm strategy and achieving organizational success.
Yet, despite the growing importance of stakeholder management, few studies have examined the influence of stakeholder relationship capability on firm innovation, especially in Africa. This chapter aims to overcome this research limitation by reviewing extant research on the various ways stakeholder management and relationship capabilities influence firms’ innovation. We first provide a general overview of stakeholder theory and management. Second, we examine the linkage between stakeholder management and firms’ innovations. Third, we review the various challenges and strategies in stakeholder management for successful innovation. We conclude the reviews with the future directions and implications, providing novel insights into how innovative firms in African countries could harness the benefits of stakeholder management to enhance innovation.
