Stakeholder relationship management as a tool for municipal public value generation: a case study of five municipalities in the Western Cape

Haarhoff, Kosie Jacobus (2019-12)

Thesis (PhD)--Stellenbosch University, 2019.

Thesis

ENGLISH SUMMARY : Municipalities is the sphere of government that works closely with communities and thereby directly interacts with and serves citizens. Enhancing public trust in government, improving public services and achieving social outcomes have been identified as potential and significant areas where public value can be formed that is truly perceivable by citizens. This dissertation reports on an evaluative study of stakeholder relationship management between municipalities and their stakeholders, using five municipalities as case studies to empirically measure this relationship. The dissertation attempts to determine how municipalities in the Western Cape manage their stakeholders and how this management assists in creating public value. The dissertation draws from the strategic triangle of Moore (1995), which entails that leaders can create strategic visions and goals that are clear and socially valuable. The triangle also indicates that if the political and legal support is in place it can help to accomplish the goals of the organisation. The research methodology entails an analysis of relevant literature, policies, legislation, questionnaires and municipal documentation. In addition, the field work utilises a semi-structured mixed questionnaire for conducting interviews with municipal managers (MMs), communication officers and municipal officials. In this dissertation, the researcher opted for stakeholder theory to support public value theory. The dissertation fills a gap in the current literature on local government, providing practical research to municipalities on how to use stakeholder relationship management as a tool to create public value and on how stakeholders can become partners and co-producers within public value structures, networks and/or linkages. The dissertation posits that a new way of dealing with stakeholder relationship management is required. The results show that stakeholder relations management, “through the development of mutually beneficial relationships with external stakeholders, can result in the creation of public value and societal legitimacy”. The dissertation emphasises that responsive local governance is dependent on public trust in those who are leading municipalities: the elected councillors and appointed officials. The dissertation identify principles for effective stakeholder identification and these principles are built in to a stakeholder management model. The results of the dissertation show that engagement with stakeholders is helpful as it develops a better understanding of issues and also bring alternative views to the forefront. The cases provide a clear illustration of how the concept of public value can be used practically when looking at the success of municipalities. A new framework is proposed, based on the critical public values identified, consisting of three main areas. The empirical research findings and case studies provide the basis for the stakeholder relationship management framework. The information gathering occurred through a variety of methods, including focus group meetings, steering committee meetings, interviews, document analysis and workshops. All the stakeholders in the dissertation, with the exception of local suppliers, were consulted. The dissertation also draws on literature on relationship management within the organisational context. A stakeholder relationship management framework is proposed that can be used by individual municipalities in pursuit of an improved relationship with stakeholders. This suggested framework can lead to an improved relationship with municipal stakeholders, as suggested in the literature on stakeholder management. Enhanced stakeholder relationship management will help municipalities to improve capability and execution. This framework is by no means a blueprint to address the problems in municipalities but can contribute towards better service delivery and governance outcomes and the creation of public value. This dissertation also makes a valuable contribution to the current body of stakeholder management research within the local government context.

AFRIKAANSE OPSOMMING : Die primêre doel van hierdie proefskrif is om ondersoek in te stel hoe munisipaliteite in die Wes-Kaap hulle belangegroepe bestuur om beter dienslewering te verseker. Dit fokus op die verhouding tussen munisipaliteite en hulle belangegroepe, die ontwikkeling en instandhouding van die verhouding en die impak van die verhoudinge op Munisipale strategieë wanneer daar met belangegroepe gedeel word. Die studie kyk spesifiek na drie belangegroepe binne die munisipale landskap naamlik legitieme, strategiese en reflektoriese belangegroepe. Die redenasie is dat beter belangegroep bestuur kan lei tot verbeterde dienslewering en die daarstelling van munisipale openbare waarde. Alle belangegroepe in die studie, met die uitsondering van plaaslike voorsieners in die verskillende Munisipale areas is gekonsulteer. Die proefskrif kyk ook na verhoudingsbestuur binne n organisatoriese konteks. Die navorser het die belangegroep teorie en die openbare waarde teorie gebruik as basis vir die studie. Die keuse is gemaak deur te kyk na die kwessies wat die belangegroepe deel. Die studie beoog om te kyk na die essensie van belangegroep bestuur binne n korporatiewe konteks en hoe dit kan lei tot verbeterde dienslewering en die daarstelling van openbare waarde. Die studie vul ‘n gaping in die huidige literatuur van plaaslike regering en voorsien praktiese navorsing aan munisipaliteite oor hoe om belangegroepe te gebruik as ‘n hulpmiddel om dienslewering te verbeter en sodoende openbare waarde te skep en hoe professionele belangegroepe deel kan vorm van die proses van verbeterde dienslewering. Die studie veronderstel dat ‘n paridigmaskuif nodig is oor belangegroep bestuur. Die analise van die vyf munisipaliteite in die Wes-Kaap voorsien die basis vir die bevindinge. Die resultate toon dat belangegroep bestuur gerugsteun deur die ontwikkeling van ‘n voordelige verhouding vir albei partye kan lei tot verbeterde dienslewering en die skepping van openbare waarde. Dit bevind verder dat effektiewe plaaslike regering is afhanklik van publieke vertroue in die wat lei: gekose raadslede en aangestelde amptenare. Die resultate toon dat die belangegroep bestuur praktyke in die vyf munisipaliteite besig is om te versterk en dat daar n groter fokus is op die bestuur van belangegroepe veral gesien in die lig van die feit dat munisipaliteite in Suid Afrika worstel met volhoubaarheid kwessies. Huidige praktyke toon dat iets daadwerklik aan die situasie gedoen moet word ten einde die resultate te verbeter. Verder word belangegroep verhouding bestuur beinvloed deur die interaksie tussen organisasiestrukture en ander prosesse. Die studie toon ook dat belangegroepe bestuur ‘n langtermyn doelwit is wat geïntegreer moet word op verskillende vlakke binne n munisipaliteit in die verskillende departemente. Die dinamika binne verskillende munisipaliteite moet ook in aanmerking geneem word omdat plaaslike toestande verskil. Oplossings word ook voorgestel om uitdagings wat deur munisipaliteite ondervind word, aan te spreek. Daar is ‘n groot behoefte aan vaardighede binne munisipale verband en die nodige kapasiteit moet geskep word om te verseker dat munisipaliteite die nodige aandag skenk aan belangegroep verhoudingsbestuur. ‘n Belangegroep verhoudings bestuursraamwerk word voorgestel wat gebruik kan word deur munisipaliteite in hul soeke om die verhouding met belangegroepe te verbeter. Hierdie voorgestelde raamwerk kan lei tot verbeterde verhoudingsbestuur met Munisipale belangegroepe soos voorgehou in die belangegroep verhoudingsbestuur. Beter bestuur van belangegroepe sal munisipaliteite help om kapasiteit en implementering te verbeter. Die raamwerk is geensins n bloudruk om probleme binne munisipaliteite aan te spreek nie maar dit kan lei tot verbeterde dienslewering, regeerkunde uitkomste en die skepping van openbare waarde. Die studie dra by tot die belangegroep literatuur deur die belangegroep verhoudings te omskryf en die dimensies binne n munisipale konteks. Die studie het bevind dat belangegroep verhoudings bestuur in n munisipaliteit dra by tot die agenda wat in die organisasie gedryf word.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/107057
This item appears in the following collections: