Latifa Mbelwa


The purpose of this paper is to advance knowledge of stakeholders’ identification, stakeholders’ Salience, and Companies’ Stakeholders Management Strategies in Oil and Gas Industry in Tanzania. The paper employed exploratory case study strategy. The data were obtained from two Oil and Gas companies’ websites and were analyzed using content analysis. Stakeholder theory was used to interpret the data. The principal research findings reveal the role of the sustainability reporting, good governance, stakeholder engagement, risk management and corporate Social Responsibility (CSR) practices and strategies in stakeholder management by both local and international oil and gas companies in Tanzania. Moreover, the findings indicated the existence of nine key stakeholders in the oil and gas companies in which local community scored the highest. Their stakeholder salience falls from definitive to expectant and few latent who likely to turn to expectant. This is due to the fact that the nature of the industry, that it is much regulated, has a long time span and more riskier; in a way it gives the stakeholders the latent chance to gain another stakeholders’ attributes, that is either power, urgency or legitimacy. This justifyies why Oil and Gas companies are managing their stakeholders using CSR practices and strategies that touch both stakeholders and non-stakeholders. The nature of the industry allows a non-stakeholder at first place to gain stakeholder’ attribute and becomes a stakeholder. Generally, the study revealed the effort of international oil and gas companies to strongly manage and communicate with a wide range of stakeholders through their websites compared to local companies. Moreover, both companies are managing their stakeholders to create shareholder’s long term value, risk management, engagement and dialogue that shape regulative framework and for sustainable oil and gas operations. The study is recommending that the national oil and gas local content should be constructed after understanding the nature, demand and interest of stakeholders and their inter-relations for proper management of the industry and to control resources curse. Moreover, the local and international oil and gas companies and local management should understand the nature and demand of their stakeholders and set a clear stakeholder management strategies that can result to attractive local content and firms’ longterm value. The future research can broaden the findings by conducting the survey to get a conclusive understanding of stakeholder management in Oil and Gas Industry in Emerging Economies.


Keywords: Stakeholder, power, urgency, legitimacy, stakeholder salience, stakeholder identification, oil and gas companies.

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