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Purpose

The purpose of this paper is to explore the implications of stakeholder theory for organisational development and contribute to the knowledge of operational stakeholder management.

Design/methodology/approach

The paper presents a case study in a micro‐enterprise where data have been collected as participant observations.

Findings

Stakeholder theory suggests that to be sustainable, organisations must find a balance between different stakeholder interests. The paper presents a case study where a stakeholder model has been tested in a micro‐enterprise. Results include a revised model based on the experiences from the case. The stakeholder model has been adapted to accommodate a process approach and the PDSA‐cycle.

Practical implications

The model can be used when wanting to develop a structured management system based on stakeholder interests.

Originality/value

The paper has a vast content of originality as not as much has been written about stakeholder management from an empirical point of view as from a theoretical.

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