ABSTRACT
The literature on stakeholder management suggests that involving stakeholders in the decision-making process of firms is an ethical requirement and a valuable strategic resource for the firm to derive competitive advantages. However, the extent to which stakeholder involvement influences new ventures’ exploration and exploitation activities lacks theoretical clarity. This article extends the entrepreneurship literature by investigating the role of stakeholders in the exploration and exploitation of new ventures and the contingent effect of competitive intensity. In this study, it is proposed that stakeholder integration will positively affect exploration activities but will not significantly relate to exploitation. In addition, we suggest the positive relationship between stakeholder integration and exploration/exploitation activities would be amplified when the competition is intense. Implications for entrepreneurship theory and practice are discussed.
