This could be either binding or consultative, i.e. when the representative democracy takes the decision influenced by the referendum. Referendum as a binding form exists in some countries, like Switzerland and Mexico, on the regional level. Referenda require distinct alternatives to decide on, and quite a lot of administration to secure that they are performed in a fair way.
In some situations the decisions can be handed over to the stakeholders themselves. A challenge is to find structure and labour division which is fair for all participants. It can be difficult, but the gain could be enormous, too. Most tools presented under dialogue and delegated power are useful here as well.