Session 43

First Principles in Creating Value: Stakeholder Theory

Track M

Date: Tuesday, October 6, 2015

Track C

Time: 08:00 – 09:15

Paper

Room: Governor's Square 17


Session Chair:

  • Jonathan Bundy, Arizona State University

Title: A Stakeholder Theory of Resource-based Competitive Advantage

Authors

  • J W Stoelhorst, University of Amsterdam

Abstract: This paper develops a resource-based theory of competitive advantage on the basis of a stakeholder view of the firm. This is done by going back to first principles. The paper adopts the framework of cooperative game theory, but does not see the firm as a vehicle to advance shareholder interests, but as a solution to the team production problem that primary stakeholders face when engaging in joint value creation. Three questions are answered: How is value created? What is the role of the firm in value creation? How is value appropriated? The answers to these questions ground a discussion of how value creation and value appropriation relate to competitive advantage, resulting in the specification of six mechanisms that drive payments to stakeholders.

Title: Firm Serving Social Welfare

Authors

  • Sybille Sachs, Zurich University of Applied Sciences
  • Edwin Ruehli, Zurich University of Applied Sciences

Abstract: Since Ghoshal’s (2005) seminal paper “Bad Management Theories Are Destroying Good Management Practices” we have experienced many more cases in which firms have destroyed values for all kinds of stakeholders by acting on the basis of pessimistic assumptions about people and institutions induced by current management theories (e.g. self interest, opportunistic behavior). Not only stakeholders in the market like shareholders or customers are affected by such harm, but also social stakeholders such as communities or advocacy groups representing social or ecological issues (e.g. human rights, access to innovative medicine, labor conditions, or climate change). To avoid such pessimistic assumptions about people and institutions, we propose in this paper a humanistic perspective as the normative core for firms’ value creation, which challenges the understanding and role of the firm by serving social welfare

Title: Stakeholder Fit: A Theory of Reciprocal Value Creation Between an Organization and Its Stakeholders

Authors

  • Jonathan Bundy, Arizona State University
  • Ryan Vogel, Penn State Erie
  • Miles Zachary, West Virginia University

Abstract: Drawing from research on stakeholder management and person-environment fit, we develop the concept of stakeholder fit to explain the presence of mutually beneficial relationships between an organization and its stakeholders. We highlight the important role of supplementary stakeholder fit, which focuses on the congruence of values between an organization and a stakeholder, and the role of complementary stakeholder fit, which focuses on the congruence of strategic needs and resources. Based on these types of fit we develop a typology of organization-stakeholder relationships and explain the types of value and conditions created by each relationship. We end by considering how misfit on the various dimensions may lead to negative relationships and instances of relational conflict.

Title: The Dark Side of Reciprocity: Why Some Corporate Strategies Attract and Motivate both Cooperative and Punitive Stakeholders

Authors

  • Katinka Quintelier, University of Amsterdam
  • J W Stoelhorst, University of Amsterdam

Abstract: Reciprocal stakeholder behavior consists of cooperative and of punitive stakeholder behavior. Scholars investigating reciprocity acknowledge that fair firm practices increase cooperative stakeholder behavior while unfair firm practices increase punitive stakeholder behavior. However, some corporate strategies seem to attract and motivate both cooperative and punitive stakeholders. This constitutes a puzzle for stakeholder theory. In this paper we explain why and when this phenomenon is likely to manifest itself. We argue that firms communicating other-regarding motives to their stakeholders will attract and motivate cooperative and punitive stakeholders, more so than firms communicating self-regarding motives to their stakeholders. However, while firms with a long-term stakeholder strategy will attract and motivate cooperative stakeholders, this does not always hold for punitive stakeholders.

All Sessions in Track M...

Sun: 08:00 – 09:15
Session 49: Stakeholder Strategy and Corporate Growth
Sun: 09:45 – 11:00
Session 48: On Teaching CSR as a Strategic Management Topic
Sun: 11:15 – 12:30
Session 47: On the Emerging B Corp Phenomenon and the Future of Capitalism
Sun: 17:45 – 00:00
Session 322: Stakeholder Strategy Business Meeting
Mon: 08:00 – 09:15
Session 39: Who is a stakeholder?
Mon: 11:15 – 12:30
Session 34: New Explanations of Contextual Differences in CSR
Session 244: Legitimacy, Stakeholders, and Competition
Session 257: Explaining CSR: Internal Factors
Mon: 13:45 – 15:00
Session 37: Political Ties: Knots or Bows?
Mon: 16:45 – 18:00
Session 42: The Word is Out! Stakeholder Responses to Public Signals of Firms' Behaviors
Session 89: Integrating Theories of Stakeholders, Ownership, Governance and Boards
Tue: 08:00 – 09:15
Session 43: First Principles in Creating Value: Stakeholder Theory
Tue: 11:00 – 12:15
Session 260: CSR Challenges
Tue: 14:15 – 15:30
Session 44: What's New? Intersecting Stakeholders with Entrepreneurial Industries, Firms, and Organizational Forms
Tue: 15:45 – 17:00
Session 46: Accidents, Disasters, and Stakeholder Demands
Session 265: Performance Effects of CSR and Non Market Strategy
Tue: 17:30 – 18:45
Session 90: Stakeholder Strategies in Emerging Markets

All Sessions in Track C...

Sun: 11:15 – 12:30
Session 47: On the Emerging B Corp Phenomenon and the Future of Capitalism
Sun: 16:15 – 17:30
Session 223: Hybrid organizations and business model heterogeneity
Mon: 08:00 – 09:15
Session 39: Who is a stakeholder?
Mon: 11:15 – 12:30
Session 34: New Explanations of Contextual Differences in CSR
Session 222: Profit and nonprofit organizations: Patterns of collaboration and competition
Mon: 13:45 – 15:00
Session 224: Balancing profit and nonprofit objectives across different business models
Tue: 08:00 – 09:15
Session 43: First Principles in Creating Value: Stakeholder Theory
Tue: 11:00 – 12:15
Session 225: Institutional logics, legitimacy, and embeddedness in profit and nonprofit organizations
Tue: 15:45 – 17:00
Session 46: Accidents, Disasters, and Stakeholder Demands
Session 93: Blending CSR, Non-Profit, Symbolic Management and Practitioner Focus Perspectives
Session 226: Trust, loyalty, compassion: The role of resources in balancing multiple objectives


Strategic Management Society

Denver