Proposing a theoretical framework to investigate the relationships between an organization and its environment

Abstract

This paper proposes a theoretical framework for investigating stakeholder theory in organizations. The organizations theory can be understood in three theoretical models: rationalist, natural and open systems. These models are presented to justify that organizations should be analyzed taking into account that social system aspects and the natural and open system models are employed. The applications of this paper rely upon the theoretical framework which is based on an extensive literature review comprising environment based theories. This paper would be of help to researchers examining the whole set of the relationship of organizations with their environment instead of only the relationships with external agents. Employing the theoretical basis presented in this analysis, the researcher will be able to identify both feasible theoretical sources for his/her studies and useful approaches for carrying on his/her investigations. The paper presents theories for explaining the organization's behavior and performance as being influenced by stakeholders who inhabit its environment. Resource dependence and institutional theory are employed to give theoretical support to the stakeholder. At the end of the paper, a diagram representing the theoretical framework is presented.

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