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International Journal of Project Management 26 (2008) 509–516


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Stakeholder salience in global projects


Kirsi Aaltonen a,*, Kujala Jaakko b,1, Oijala Tuomas a,2
a
Helsinki University of Technology, BIT Research Centre, P.O. Box 5500, FI-02015 HUT, Finland
b
University of Oulu, Department of Industrial Engineering and Management, P.O. Box 4610, FI-90014 University of Oulu, Finland

Received 20 May 2008; accepted 20 May 2008

Abstract

Stakeholder management is particularly important in global projects, which are carried out in institutionally demanding environ-
ments. Existing research suggests that management gives attention to stakeholders whose claims are perceived to be more salient in terms
of power, legitimacy and urgency. In this paper, we study a pulp mill construction project in Uruguay to identify the different strategies
project stakeholders use to increase their salience. The salience shaping strategies identified include the direct withholding strategy, indi-
rect withholding strategy, resource building strategy, coalition building strategy, conflict escalation strategy, creditability building strat-
egy, communication strategy and direct action strategy.
Ó 2008 Elsevier Ltd and IPMA. All rights reserved.

Keywords: Stakeholder management; Global projects; Stakeholder salience; Stakeholder influence strategies; Stakeholder theory

1. Introduction gies through which stakeholders advance their interests


and affect project realization.
The management of project stakeholders is an essential Although project stakeholders have been defined in
part of project management. Project managers must con- numerous ways, the most common definitions view project
sider stakeholder’s needs and requirements to ensure pro- stakeholders broadly as any group or individual who can
ject success [1]. The management of stakeholders is most affect or is affected by the project. Stakeholder theory pro-
crucial in global projects. These projects involve multiple vides a solid standing point for identifying, classifying and
actors with differing interests and are carried out in institu- categorizing stakeholders and understanding their behavior
tionally demanding and complex environments. Several in order to better manage them. Mitchell et al. [3] classify
studies report and illustrate the challenges and conflicts stakeholders according to their power, legitimacy and
that arise from the project’s external stakeholders. For urgency of their claim and propose that these attributes
example, in large infrastructure and engineering projects, can be used to define salience of stakeholder claims to
these stakeholders have significantly affected the project determine, how much and which type of attention stake-
outcomes [2]. One of the primary challenges results from holders receive from management. However, various
management’s lack of understanding the various interest researchers have pointed out that a typical stakeholder
groups, Hence, there is a need to better understand the nat- classification approach provides only a static view of the
ure of stakeholders’ project related claims and the strate- situation and state the need to understand the dynamic nat-
ure of stakeholder attributes [3–5]. Furthermore, the main-
stream research on stakeholder management adopts the
*
Corresponding author. Tel.: +358 50 357 6077. perspective of the firm to describe and analyze the different
E-mail addresses: kirsi.aaltonen@hut.fi (K. Aaltonen), jaakko.kujala stakeholder management strategies that have been
@oulu.fi (K. Jaakko), tuomas.oijala@hut.fi (O. Tuomas).
1 employed. Only a limited amount of research adopts the
Tel.: +358 40 839 1717.
2
Tel.: +358 40 052 3492. perspective of the stakeholders to understand the kinds of

0263-7863/$34.00 Ó 2008 Elsevier Ltd and IPMA. All rights reserved.


doi:10.1016/j.ijproman.2008.05.004
510 K. Aaltonen et al. / International Journal of Project Management 26 (2008) 509–516

strategies stakeholders use to influence organizations and management approach formulation. Various definitions
their decision making. and categorization attempts of stakeholders have been pre-
In this paper, we combine the stakeholder salience sented in the existing project management literature rang-
framework with stakeholder influence strategies to identify ing from broad to rather narrow views. The broad views
the strategies stakeholders attempt to use to increase their argue that a stakeholder can virtually be anyone or any
salience in the eyes of the project management, and thus organization that is affected by the project or can affect
influence the outcome, on global projects. The paper the project. In PMBOK [10], stakeholders are defined as
extends existing research by increasing the understanding ‘‘individuals and organizations that are actively involved
of the dynamic nature of stakeholder salience in global pro- in the project or whose interest may be affected as a result
jects and the understanding of the influence strategies of project execution or project completion.” In addition,
stakeholders use to influence projects. Ultimately, under- stakeholder classifications in the project management liter-
standing stakeholder influence strategies can enable man- ature categorize stakeholders according to their role in a
agers to better understand and manage stakeholder project, such as client, contractor, customers, sponsors,
behavior. The paper addresses the types of strategies stake- local community members, NGOs, media, lobbying orga-
holders use to increase their salience and affect the outcome nizations, and government agencies [11]. A typical division
of large, global projects. is to divide stakeholders to internal and external stakehold-
We apply Mitchell et al.’s [3] stakeholder classification ers. Internal stakeholders are the stakeholders who are for-
framework in the analysis of an empirical case of the build- mally members of the project coalition and hence usually
ing of a pulp mill in Uruguay. In this case, our focal com- support the project [12]. They are often referred to as pri-
pany is the owner of the plant, Botnia S.A. Due to the mary stakeholders [13] or business actors [11]. External
stakeholder challenges, the project has been subject to stakeholders are not formal members of the project coali-
extensive media attention since the publication of the pro- tion, but may affect or be affected by the project. Such
ject in March 2005. groups are often referred to as non-business stakeholders
To begin, we review the existing literature on project [11]. A widely utilized approach for categorizing and defin-
stakeholder management and discuss the key ideas, defini- ing project stakeholders is also a categorization matrix
tions and categorizations of stakeholder theory. In addi- based on stakeholders’ power and interest in the project
tion, we present the salience framework of Mitchell et al. [14]. Winch [12] focuses his analysis on categorizing the
[3] and discuss the existing research on stakeholder influ- stakeholders as those who promote the project and those
ence strategies. After this, the empirical case Botnia is dis- who oppose it. In turn, Turner [15] views stakeholders as
cussed and analyzed. Finally, we present conclusions and ‘‘all the people or groups whose lives or environment is
recommendations. affected by the project but who receive no direct benefit
from it. These can include families, people made redundant
2. Literature review and local community actors.” This definition views stake-
holders rather narrowly as the external actors that are
2.1. Project stakeholder management not actively involved in the project.
The key issue in project stakeholder management is
The basic assumption of stakeholder theory is that a managing the relationship between the project and its
company has relationships with many groups and organi- stakeholders. As PMBOK [10] defines it, project stake-
zations in the external environment. These groups and holder management is ‘‘the systematic identification, anal-
organizations affect the company’s decisions and, in turn, ysis and planning of actions to communicate with and
are affected by the company’s decisions [6]. The purpose influence stakeholders.” Many tools exist to manage stake-
of stakeholder identification and analysis is to facilitate holders in projects. For example, there are tools to classify
the understanding of how to manage stakeholders in stakeholder through matrices such as the power/interest in
increasingly turbulent and unpredictable environments. the project matrix [14], tools to map whether stakeholders
The theory’s primary focus is on managerial decision mak- are promoting or opposing the project [5], and tools to cat-
ing [7]. The stakeholder research has focused on describing egorize, visualize, and identify different stakeholder attri-
the actual processes of management decision making. butes such as Stakeholder Circle [16].
Hence, the existing research’s perspective is typically the
viewpoint of the focal company with little attention given 2.2. Stakeholder salience framework
to the stakeholder’s perspective [4,8]; however, viewing
the situation from stakeholders’ point of view can ulti- In this paper we build upon Mitchell et al.’s [3] stake-
mately enhance managers’ understanding of stakeholders holder identification and salience framework. The stake-
and their management. holder salience framework indicates whether a stakeholder
In the field of project management, Cleland [9] intro- that possesses one or more of the attributes of power, legit-
duced stakeholders and stakeholder management processes imacy and urgency is more salient to firms – salience refers
to the project management by highlighting the importance to the degree to which managers give priority to competing
of stakeholder identification, classification, analysis, and stakeholder claims. By combining these three attributes, a
K. Aaltonen et al. / International Journal of Project Management 26 (2008) 509–516 511

typology of stakeholders can be formed and their impor- In an attempt to advance Frooman’s [4] arguments,
tance to management and its decision making evaluated. Hendry [8] has explored different influence strategies used
Hence the salience framework predicts the stakeholders a by environmental non-governmental organizations. In his
focal firm’s management pays attention to, i.e. which stake- empirical study, he identifies seven influence strategies:
holder is salient in the eyes of the management. allying with other stakeholders, multi-stakeholder dia-
The framework proposes that the more powerful the logues, letter-writing campaigns, blockades, boycotts, liti-
stakeholders are, the more salient their requests are in the gation and lobbying legislators.
eyes of the management. In the salience framework, stake-
holder power is defined as ‘‘the ability of those who possess 3. Methodology
power to bring about the outcomes they desire” [17]. The
bases of power are seen to be mainly in the type of resource To understand the strategies stakeholders use in shaping
used to exercise power. According to Etzioni [18], coercive their salience attributes, we conducted a single case study
power is based on the physical forces of force and violence, was conducted [20]. Our global project case, further
utilitarian power is based on material or financial referred to as Botnia, is a pulp mill construction project
resources, and normative power based on symbolic carried out in Uruguay and has faced vast stakeholder
resources. related challenges. We selected this particular case in order
Mitchell et al. [3] argue that the more legitimate the to explore and understand the strategies through which
stakeholders’ claims are, the more likely they are to stakeholders influence and shape their salience attributes
receive positive responses from firms. Mitchell et al. [3] in global projects. We hypothesized that the groups who
employ the definition of Suchman [19] on legitimacy as opposed the project would be the ones attempting to
‘‘a generalized perception or assumption that the actions receive management attention to their requests. It is in
of an entity are desirable, proper or appropriate within these instances of potential conflict where the concept of
some socially constructed system of norms, values, beliefs stakeholder management becomes meaningful to projects;
and definitions.” therefore, our case analysis focuses mainly on identifying
Finally, the urgency of the stakeholders’ request is seen and categorizing the salience shaping strategies of the pro-
as the third attribute that increases the salience of the ject opponents that are not directly involved in the execu-
stakeholder. Urgency is defined as ‘‘the degree to which tion of the project.
stakeholder claims call for immediate attention.” It is based The data for the case study was collected from public
on two attributes (1) time sensitivity – the degree to which sources by two of the researchers. Many Botnia project -
managerial delay in attending to the claim or relationship is related articles were published in two main Finnish finan-
unacceptable to the stakeholder – and (2) criticality – the cial periodicals.3 In order to obtain a rich case description
importance of the claim to the stakeholder. of the case for analysis, we used these periodicals, other
related and publically available material, such as the draft
2.3. Stakeholder influence strategies cumulative impact study of the pulp mill conducted by
World Bank, and Internet sources such as the webpage
Stakeholders use versatile strategies or tactics to influ- of Botnia and of different stakeholders. In addition the
ence firm’s and project’s decision making. Limited atten- findings of this study were discussed with Botnia
tion is given to the strategies of stakeholders in the representatives.
existing literature [4,8]. However, different stories and case In the first step of the case analysis, researchers familiar-
descriptions illustrate the various actions stakeholders ized themselves with the case material and formed a picture
engage to advance their interests. Frooman [4] has utilized of the series of different project events. After this, two of
resource dependency theory in his argument on the kinds the researchers independently documented the incidents
of strategies stakeholders choose. In his theoretical analy- and formed a timeline of project related important inci-
sis, he identifies four types of stakeholder influence strate- dents, which were then compared. In the process of com-
gies that are based on the nature of resource relationships parison, special attention was placed on the incidents that
between stakeholders and the focal company. These strat- were stakeholder specific. At this stage, a dynamic project
egies are: direct withholding, direct usage, indirect with- stakeholder map was formed, which made it evident that
holding and indirect usage. In the direct withholding one local stakeholder group in particular was an important
strategy, a stakeholder will withhold resources in an actor and initiator in the stakeholder related events and in
attempt to change a behavior of the firm. When a stake- shaping its salience attributes in the case. Hence, most of
holder continues to supply resources, but attaches con- our analysis is focused around this group’s activities. After
straints towards the use of the resource, they are using compiling the list of stakeholder specific events, the identi-
the direct usage strategy. Whereas the stakeholder directly fied influence strategies were analyzed, evaluated, and
manipulates the flow of resources to the firm in the direct
strategies, in indirect strategies the stakeholder works
through an ally by having an ally to manipulate the flow 3
Kauppalehti and Talouselämä. Our article sample covered over 100
of resources to the firm [4]. articles published during 2005–2007.
512 K. Aaltonen et al. / International Journal of Project Management 26 (2008) 509–516

categorized according to their effects on salience attributes. visited Gualeguaychu to meet the local people and gain
The results of our analysis are presented in the case conclu- political support. It soon became evident to Botnia that
sions chapter. the use of Argentinian subcontractors would be a problem
and they began to search more local subcontractors.
4. Empirical case description The World Bank’s International Finance Corporation
(IFC), a major financier of the project, published a draft
4.1. Case background cumulative impact study of the two mills on the 19th of
December 2005. According to the study, the technical
Botnia S.A.’s cellulose pulp mill investment in Fray Ben- requirements of the plants had been fulfilled and the
tos is the largest industrial investment in the history of quality of the water and the air in the region should
Uruguay. The pulp mill is located in the Uruguay River, not be harmed. The IFC said it would wait for further
which is a border river between Uruguay and Argentina. consultations before finalizing the study and thus before
The use of the river is protected by a treaty, which requires financing the projects. At the same time, CEAG members
both parties to inform the other of any project that might were actively initiating letter-writing campaigns to the
affect the river. One of the most local active groups oppos- banks planning to finance the project. In these letters,
ing the project was the Argentinian Citizens Environmental the environmental and social effects of the mills were
Assembly of Gualeguaychú (further referred to as CEAG). pointed out.
It was concerned that the pulp mill would pollute the river At the end of 2005, CEAG members and local residents
and harm the flourishing tourism business of the town blocked a road and detour bridge. The timing of the block
across the river. The challenges related to the management during holiday season was critical, and it angered many
of complex external environment were pointed out by Bot- drivers. In addition, the block prevented material transpor-
nia’s project manager, tations from Chile via Argentina to Uruguay. As a
response to the blocks, the Uruguayan chancellor accused
‘‘Building a plant is not just pure technology, but really
Argentina of violating Mercosur regulations on the free-
much something else. In addition to being a cellulose
dom of circulation of goods. These requests were strongly
engineer one should be a political engineer.”
rejected by Argentina and it decided to take the case to
Haag court in January 2006. Argentina accused Uruguay
4.2. Botnia’s investment preparation (1999–2005) of violating the Uruguay River Statute by authorizing the
construction of the plants without prior consultation with
The preparation for the pulp mill investment project was Argentina.
started in the 1990s by searching for appropriate locations The road blocks soon became everyday occurrences. In
in South America. After selecting Fray Bentos as the loca- early 2006, Greenpeace activists met with Uruguayan offi-
tion, the project team emphasized stakeholder communica- cials to request suspension of the work and the environ-
tion by organizing local information sessions in both mental organization Friends of the Earth also made
Uruguay and Argentina. Even though attendance at the demands for Botnia to abandon the pulp mill project.
information session in Argentina side was not high, Botnia
was not alarmed. 4.4. Weak resolution attempts during spring 2006
The company’s goal was to integrate with the local cul-
ture and economy – the CEO of the company was hired Throughout the spring of 2006, CEAG continued its
from Uruguay, local companies were selected as subcon- protests. In addition, the local Argentinian government
tractors and plans were made to use Argentinian subcon- supported the spreading of pamphlets and flyers about
tractors. Botnia minimized technical risks of the project the paper factories and the risks of pollution. CEAG and
by only using technology that was successfully operating others spread emails regarding the threats of the pulp mill
in other plants. Finally, they ensured environmental friend- and posted video clips to YouTube targeting Botnia and
liness by utilizing the best available technology. the pulp mill. They also initiated boycotts against Finland.
At the same time CEAG’s previous counsel, Romina
4.3. Escalation of the conflict in 2005 Picolotti, was appointed to the Argentina Secretariat of
Environment and Sustainable Development. Picolotti sent
Once the Uruguayan government granted permission to a letter to IFC authorities, claiming that the environmental
build the plant in February 2005, active construction com- studies did not provide new data and speculating that part
menced. At this point, CEAG and local residents initiated of the study was conducted by the same engineer hired for
active protests, and by the end of April, tens of thousands Botnia’s own previous study. Later, the ombudsman of the
of people gathered to block a bridge between Gual- World Bank concluded that the IFC review of the cellulose
eguaychú and Fray Bentos to protest the building of pulp plants was ‘‘incomplete” and did not employ rigorous
mills. In addition to CEAG, the protests were also sup- procedures.
ported by the governor of the local Argentinian commu- During the spring various parties, such as the Catholic
nity, Entre Rı́os. The Argentinian chancellor personally Church, offered to facilitate mediation sessions. During a
K. Aaltonen et al. / International Journal of Project Management 26 (2008) 509–516 513

visit to Chile in March, both the president of Argentina onstrations were also seen outside the Finnish embassy in
and Uruguay met to discuss the situation face-to-face. Argentina. At this point, it was speculated that Botnia
Together, they asked participants to suspend both the con- would need to make further investments to avoid conflict
struction of the cellulose plants and the road blocks in that would hurt its upcoming operations. The situation
order to discuss the matter. In late March, Botnia decided for Uruguay and Botnia was made worse when the ICJ
to suspend the building of the mills to ‘‘contribute to the denied Uruguay’s requests to take provisional measures
opening of a dialogue”. against the blockades. This denial increased Argentina’s
motivation and led to additional road blockades by local
4.5. International Court of Justice’s decision in July 2006 groups. With the given situation, the King of Spain recom-
mended a large theme park be built between Fray Bentos
In July, 2006, Argentina sued Uruguay in the Interna- and Gualeguaychú. Other suggested courses of action were
tional Court of Justice (ICJ). Argentina argued that Uru- Botnia-sponsored pipelines to change the location of waste
guay had breached a treaty obligation that required water disposal and the installation of filters on exhaust
consultation with the neighboring country before doing pipes. For Botnia, this was controversial as they were con-
anything that might affect the river. In response, Uruguay vinced that the technology would not pollute the air or
took its case to Mercosur, claiming that Argentina had water. Thus, landscaping projects and theme parks seemed
failed to take action to ensure the free circulation of goods to be the most plausible course of action.
and services. During their defense at the ICJ, the Uruguay-
an authorities pointed to the fact that the plants were to use 4.8. Startup of the plant in late 2007
a technology known as elemental chlorine-free bleaching,
which has been adopted by both the United States and The situation escalated when Argentinian locals block-
the European Union as the ‘‘best available technology” aded entryways to Uruguay in early April, a popular time
in their wood pulp processing environmental regulations, for Uruguayans to travel. Entre Rios passed legislation
and that an independent World Bank study has supported prohibiting the transport and export of wood to Uruguay,
their position. In July, 2006, the ICJ ruled that Argentina threatening high financial penalties. However, Botnia owns
had failed to convince the court that Uruguay’s actions several plantations and can fulfill most of the plant’s lum-
were enough to grant a provisional measure to stop the ber needs with its own supply.
construction of the two cellulose plants. Finally, in the beginning of April 2007, a meeting was
arranged between the leaders of Argentina and Uruguay
4.6. Involvement of financial parties with the King of Spain acting as a mediator. Argentina
announced that it would attend the meetings, but with a
In April 2006, the Dutch bank ING announced that it determined mindset. They would demand that Botnia leave
would abandon its advisory role for Botnia. The IFC and Fray Bentos. The results of the negotiations were vague
the Multilateral Investment Guarantee Agency (MIGA) and different types of protests continued the whole summer
released the final version of the environmental study in and fall. The opponents stated that they would finally have
October 2006, stating that the pulp mill project is environ- to resort to more powerful actions.
mentally sound and a positive force for the Uruguayan The Botnia mill was scheduled to start its operations in
economy. CEAG reacted to the study with new road blocks September, but the operation permits from the Uruguayan
and encouraged Argentinians not to visit Uruguay during government were not received before the 9th of November,
their summer vacations. soon after the Argentinian presidential election. To protect
On November, 2006 the IFC and MIGA approved $170 the start-up of the mill, Uruguay closed the border between
million and $350 million guarantees, respectively. They Argentina and Uruguay in order to prevent any conflicts or
claimed that ‘‘the two organizations, after completing a demonstrations on the Uruguayan side. The pulp mill
thorough review of the facts, are convinced that the mill finally began its operations in late 2007.
will generate significant economic benefits for Uruguay
and cause no environmental harm.” The president of 5. Case conclusions
Argentina reacted to this by emphasizing that Argentina’s
government would not prevent the blockades. This pushed The Botnia case provides interesting insights into the
Uruguay to take the case to the ICJ. dynamic nature of stakeholder involvement in complex
global project networks that are carried out in turbulent
4.7. Pressure continues during 2007 and institutionally demanding environments. In our actual
case analysis, we will focus on the salience shaping strate-
At the beginning of 2007, Argentina threatened to gies stakeholders use to attain management’s attention.
impose laws that would ban exporting or transporting In Table 1, we identify and categorize three strategies used
wood from Argentina to Uruguay. These threats were by the opponents of the mill to shape their salience attri-
focused primarily on the region of Entre Rios, where an butes and gain attention from Botnia’s management:
Argentinian governor is actively opposing the mills. Dem- power, legitimacy and urgency.
514 K. Aaltonen et al. / International Journal of Project Management 26 (2008) 509–516

Table 1
Salience shaping strategies of project opponents
Salience Strategies employed to shape salience attributes Description
attribute
Power – CEAG actively lobbied project sponsors and financial parties Trying to affect and influence the parties that provide resources,
(e.g. IFC and the Dutch bank) by sending letters to inform them e.g. financiers of Botnia during the project and during the plant’s
of the speculated effects of the pulp mill operations by proclaiming that involvement in the project will
– CEAG actively lobbied Argentinian and Uruguayan governmen- harm their reputation. This strategy is an in-direct strategy to
tal representatives to pass laws that would harm the operations increase power by affecting project resources
of the plant
– Argentina passed a law preventing the transportation and expor- Affecting directly the project by withholding resources from the
tation of wood to Uruguay from Argentina project
– Opponents prevented transportation from Chile via Argentina to
Uruguay
– CEAG actively built networks and coalitions with local citizens Building lobbying allies, coalitions and networks especially with
and Uruguayan environmental groups organizations that have a high inter-dependence relationship with
– CEAG built connections with powerful international environ- the project and this way increasing power base and legitimacy
mental groups such as Greenpeace and CEAG
– CEAG recruited people with connections to and past experience Recruiting capable and knowledgeable individuals with networks
in the IFC and Argentinian government to important resource providers, increases power base
Legitimacy – CEAG fully supported Argentina’s attempts to block the plant at Initiating a legal and political conflict can be interpreted as an
international court attempt to increase the legitimacy of the claims
– Opponents actively searched for both national and international
political support
– Local Argentinian politicians used the project as an arena for
promoting their political careers
– CEAG organized local information sessions, handed out pam- Trying to initiate awareness of the effects of the project in the local
phlets, communicated with by-passers, initiated letter-writing community through different information medias is a strategy to
and email campaigns, posted video clips and images of the pulp increase legitimacy and negatively affect the reputation of the
mill to the Internet and YouTube project and the parties actively involved in it
– Opponents organized boycotts against Finland
– Local citizens did not attend the information sessions organized Signaling the illegitimacy of the project to the focal company.
by Botnia for the local stakeholders However, these types of means may be interpreted by the focal
company in a way that the local community accepts the project
– Opponents accused Botnia and IFC of impartial environmental Attacking project supporters e.g. financiers by proclaiming they
evaluations conduct incomplete environmental evaluations in an attempt to
question their legitimacy and morality and negatively affect their
reputation
– CEAG and Argentina attempted to utilize Ence’s withdrawal as a Using other projects and withdrawals by companies as an example
showcase of the legitimacy of the claims to signal the legitimacy of withdrawing from similar situations
Urgency – Opponents organized direct events such as protests, blockades, Signal the urgency, time-sensitivity and criticality of the project to
road blocks during holiday seasons and prevented transport to a stakeholder by direct actions
the pulp mill site
– Opponents searched for extensive international media attention
by organizing a scene at an EU meeting
– Opponents threatened companies with legal consequences
– Opponents continued protests to indicate the urgency and criti-
cality of their claims
– Opponents threatened that the continuation of protests, even
after plant operations start

6. Discussion managers perceive their importance by increasing their


salience.
6.1. Stakeholder salience shaping strategies in global projects Drawing from the identified strategies stakeholders used
in the Botnia case, we formed more generic strategy catego-
According to Mitchell et al. [3], managers will more ries stakeholders use to increase their salience. These are
likely pay attention to and respond to the claims of those presented in Table 2.
stakeholders that they perceive to have more salience, According to resource dependence theory project stake-
which is defined using three attributes: power, legitimacy holder power is related to the resource dependence a
and urgency. It is also important for stakeholders to rec- specific stakeholder has with the project. In order to
ognize that managers will evaluate the salience of their provide the project with the resources, stakeholders can
claim compared to the salience of other stakeholders’ claim something in return, which gives them utilitarian
claims [21]. Thus, stakeholders wish to influence the way power over projects [3]. Stakeholders that use the direct
K. Aaltonen et al. / International Journal of Project Management 26 (2008) 509–516 515

Table 2
Classification of stakeholder salience shaping strategies in projects
Type of stakeholder Description
strategy
Direct withholding Stakeholders restrict project’s access to critical resources which are controlled by the stakeholder to increase their perceived
strategy power

Indirect withholding Stakeholders influence project’s access to resources that are not directly controlled by the specific stakeholder to increase their
strategy perceived power

Resource building Stakeholders acquire and recruit critical and capable resources to their group to increase their perceived power
strategy

Coalition building Stakeholders build alliances with other project stakeholders to increase their perceived power or legitimacy
strategy

Conflict escalation Stakeholders attempt to escalate the conflict beyond initial project related causes (e.g. political). Through this process the
strategy project may become an arena for non-project related battles. This may introduce a new institutional environment in which
stakeholders’ claims are perceived as more legitimate

Credibility building Stakeholders increase their perceived legitimacy by acquiring credible and capable resources, for example, capable individuals
strategy with good reputation or networks

Communication strategy Stakeholders use different types of media to communicate and increase the perceived legitimacy and urgency of their claims

Direct action strategy Stakeholders organize protests, road blockades, etc. to increase the perceived urgency of stakeholder claims

withholding strategy control critical resources in terms of building strategy, for example, recruiting a well-known
project’s success and can therefore increase their power and legitimate member into the stakeholder group. Project
by conditionally restricting access to these resources. In stakeholders may use communication or direct action strat-
the Botnia case, Argentina used this strategy by threatening egies to increase the urgency of their claims. In the Botnia
to pass laws preventing the supply and transportation of case, different stakeholders used the different communica-
wood from Argentina to Uruguay. In addition, stakehold- tion channels and media cleverly to highlight the urgency
ers may be in a position to influence resources provided by of their claims in various protests and roadblocks.
another stakeholder. In these instances, they can use the
indirect withholding strategy to manipulate the flow of 6.2. Managerial implications
resources and increase the salience of their claims [4]. For
example, CEAG attempted to influence the financial Stakeholder management can be critical for global pro-
resources provided by the banks by initiating letter-writing jects. These projects are executed in demanding and unpre-
campaigns against them. The Resource building strategy dictable institutional environments and involve a number
can be used by stakeholders to increase the possession of of diverse actors who are affected by the project and can
critical resources on a project. also affect the project. To achieve project success, it is
Stakeholders may use different strategies to influence the therefore critical to understand both the interests of stake-
legitimacy of their claims. One important strategy for this holders and the means through which they attempt to
is the coalition building strategy. This can directly increase achieve their interests and objectives. Stakeholder action
stakeholder legitimacy, particularly if they are able to form can arguably increase the direct operational costs of pro-
a coalition with a more legitimate partner. Stakeholders jects in the form of from legal fees and public relation
often do not pursue their objectives alone, but in coopera- expenses. Furthermore, stakeholder actions may have neg-
tion with other partners and stakeholders to increase the ative effects on the reputations of companies engaged in the
salience of their claims [21]. Furthermore, in the Botnia project and affect the company’s subsequent project
case, the process of coalition building and networking with business.
other stakeholders proved to be important to support the Through the use of the Botnia case, our findings pres-
conflict escalation strategy used to create a political conflict ent the criticality of stakeholder’s claims and deepen the
between Argentina and Uruguay. In many projects, there understanding of the strategies stakeholders use to shape
are also actors who use the project to further other, non- their salience and affect the project outcomes. Further, we
project related goals. In these situations, the project shed light on the multidimensional and dynamic concept
becomes an arena for actors with a political agenda to pro- of stakeholder interest. It is important for the focal
mote other, non-project related issues. Finally, stakehold- company to understand the nature of stakeholder inter-
ers can increase their legitimacy through the credibility ests in planning and adopting its effective stakeholder
516 K. Aaltonen et al. / International Journal of Project Management 26 (2008) 509–516

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