Session 46

Accidents, Disasters, and Stakeholder Demands

Track M

Date: Tuesday, October 6, 2015

Track C

Time: 15:45 – 17:00

Paper

Room: Director's Row J


Session Chair:

  • Luis Ballesteros, University of Pennsylvania

Title: Dealing with Multiple Stakeholders: A Tradeoff Approach

Authors

  • Musab Almutawa, IE Business School
  • Luis Diestre, IE Business School

Abstract: Our study examines why firms respond the way they do to stakeholder demands. We argue that firms will respond differently to heterogeneous stakeholders, even when these stakeholders have convergent demands, because of differences in information, technical expertise, and urgency across stakeholders. This, we claim, leads to the presence of important trade-offs. We look at regulator and NGO demands on specific toxic chemicals, and firms’ internal (lower generation) and external (greater recycling) responses to those pressures. We show that regulatory (NGO) pressures on specific chemicals improve a firm’s internal (external) response to those chemicals, but worsen their external (internal) response to the same chemicals, as well as their internal (external) response to other chemicals.

Title: How do Crises Impact SMEs’ Survival and Recovery Rates?

Authors

  • Ilgaz Arikan, Kent State University
  • Oded Shenkar, Ohio State University

Abstract: How does the strength of domestic institutions affect small to mid-size enterprises (SMEs) that experience financial, economic, and political crises? We compare the survival and recovery rates of SMEs in the US, Europe and Latin America. As the occurrence of rare events accumulates in an economy, the experiences gained by firms in how they face these exogenous shocks provide them with tools to develop capabilities. If strong institutions buffer firms in small shocks and inhibit them from developing necessary capabilities, in the event of bigger shocks, those firms in strong institutional environments become more vulnerable than those firms in weaker institutional environments. We show that SMEs that experience repeated shocks, conditional on their survival - recover faster than their counterparts in stronger institutional environments.

Title: Markets as Club-Goods Systems: A Study of the Role of Economic Reliance in Corporate Pro-Social Behavior

Authors

  • Luis Ballesteros, University of Pennsylvania

Abstract: When firms decide to engage in the provision of collective goods that benefit social welfare, they may consider the economic relevance of such goods for their own market operation. The bigger the stake of the firm in a given market, the greater its reliance on the market’s collective goods. Therefore, a market’s relative importance for a firm should be a significant predictor of corporate pro-social behavior—which is not explained by social preferences or strategic considerations. Drawing from clubs theory, I analyze data on corporations’ philanthropic responses to 3,115 disasters between 2002 and 2014. I show that economic reliance leads to a more accurate prediction of the frequency and magnitude of corporate pro-social behavior than widely invoked arguments from the strategic philanthropy and institutional literatures

Title: The Squeaky Wheel Gets the Grease: The Effect of Organizational Wrongdoing on Stakeholders’ Responses

Authors

  • Brian Park, INSEAD

Abstract: Research on organizational wrongdoing has been dominated by the social punishment view, according to which organizations can expect to be punished by stakeholders for wrongdoing. Drawing on research on organizational sensemaking, this paper questions the social punishment perspective, suggesting that whether organizations are punished after incidences of wrongdoing depends on the type of stakeholders concerned: consumers and governments. I show that while consumers punish an organization in the wake of severe wrongdoing, governments lend financial support to the culpable organization. I also explore how stakeholders react differently according to the controllability of the wrongdoing and the size of the focal organization. Analyzing the airport industry in the United States from 2009 to 2014, I found that following a serious accident, airports experienced a drop in service fees from consumers but received more funding from government. I also found that the controllability of wrongdoing and organizational size moderated the relationship.

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