Abstract: Much of the business literature suggests that firm performance should be measured in financial terms, based on the notion that the primary obligation of a corporation is to provide high shareholder returns. An alternative literature is emerging in which scholars identify the many weaknesses associated with shareholder primacy, and offer alternative performance measures that are focused on a broader set of stakeholders. One such publication was provided to high-level executives in large companies. The executives were then given the opportunity to critique the paper and to discuss the extent to which their firms are engaging in the types of performance measurement activities contained therein. This proposal is a direct response to the call by SMS leaders to engage practitioners in useful dialogues within our Society.

Abstract: A firm’s stakeholders are a necessary component in nonmarket strategies, yet consideration should go beyond the traditional nonmarket stakeholders of—for example, activist stakeholders—and should include market stakeholders as they can also participate in nonmarket strategies. Empirically we draw on three illustrative case studies that show the role of competitors participating in nonmarket strategies in a range of contexts. The key contribution of this paper is that collaboration with competitors can enable a variety of nonmarket strategies that advances the firms’ competitive position. This contribution is important as it demonstrates how collaboration with competitors—which would often be illegal in the context of market strategy—can be a legitimate approach to nonmarket strategy. In addition, we present three testable propositions regarding the sustainability of nonmarket strategies when they are undertaken with competitors.

Abstract: Stakeholder theorists have seldom studied individual stakeholders’ multiple identities. This study employs insights from the identity literature to explore conflicting stakeholder group identities, both from the stakeholder and firm perspectives. We develop a set of propositions on the negative consequences of conflicting identities on the attitudes and behaviors of stakeholders toward a firm. Furthermore, we offer four avenues for managers to address conflicting stakeholder group identities – emphasizing, compartmentalizing, suppressing, and integrating conflicting stakeholder identities – and illustrate these avenues using examples. Our work contributes to the burgeoning field exploring the micro-foundations of stakeholder theory.