scholarly journals Incumbent Stakeholder Management Performance and New Entry

2020 ◽  
Author(s):  
André Laplume ◽  
Kent Walker ◽  
Zhou Zhang ◽  
Xin Yu
Keyword(s):  
Business Ethics ◽  
Competitive Advantage ◽  
Stakeholder Theory ◽  
Stakeholder Management ◽  
Stakeholder Group ◽  
Curvilinear Relationship ◽  
Management Performance ◽  
Entrepreneurial Entry ◽  
Very High ◽  
New Entry

Abstract Instrumental stakeholder theory seeks to explain how managing stakeholders effectively can yield competitive advantage for incumbent firms. We extend instrumental stakeholder theory to explain and predict future competition operationalized as new entrepreneurial entries. Our study is among the first to empirically examine the relationships between aggregate stakeholder management performance and the entrepreneurial entries of individuals. Using a combined U.S. dataset from 2003 to 2013 from the Kinder, Lydenberg and Domini (KLD) Index, Compustat, and Kauffman’s Entrepreneurship Survey, we find support for three hypotheses. First, higher levels of stakeholder management performance are related to lower rates of entrepreneurial entry. Second, a curvilinear relationship exists between stakeholder management performance and entrepreneurial entry, where both low and very high stakeholder management performance increase entrepreneurial entry. Third, the greater the variance in stakeholder management performance across stakeholders, the more entrepreneurial entry. Our findings suggest that managing for stakeholders can help to avoid future competition. We add an entrepreneurship lens to the business ethics of stakeholder theory showing how incumbent stakeholder management performance shapes opportunities for entrepreneurs, a largely neglected stakeholder group.

The Stakeholder Revolution and the Clarkson Principles

2002 ◽  
Vol 12 (2) ◽  
pp. 107-111 ◽  
Author(s):  
Thomas Donaldson
Keyword(s):  
Business Ethics ◽  
Stakeholder Theory ◽  
Corporate Responsibility ◽  
Stakeholder Management ◽  
Stakeholder Groups ◽  
Perfectly Plastic ◽  
Sloan Foundation ◽  
Encyclopedic Dictionary ◽  
Definition Of

What a difference a decade makes. Ten years ago the term “stakeholder” was slang for any neglected group affected by a corporation. To be sure, the word had been molded with precision by a thin, important line of management theorists. And to be sure also the word was sometimes used by managers who wanted to justify their personal commitments to groups other than stockholders, such as employees and customers. But like slang, “stakeholder” seemed perfectly plastic and therefore conceptually flawed. It meant one thing to one person, something else to another.Today the term has arrived. Management journals and consultants flaunt it, and articles devoted to one or another interpretation of stakeholder theory are commonplace. Both the Encyclopedia of Management (Freeman 1998) and the Blackwell Encyclopedic Dictionary of Business Ethics (Freeman 1997) identify stakeholder theory as one of a tiny handful of recognized models for interpreting corporate responsibility. As the term rose to prominence, it acquired more solidity, and while varying interpretations of it can be found, a core of meaning pervades current stakeholder literature.The success of the stakeholder terminology and of its accompanying theory has not been accidental. One of the influential forces galvanizing attention was the six-year effort on the definition of the corporation, sponsored by the Sloan Foundation, that situated the stakeholder concept at the center of its project. Through this project, books, conferences, meetings with stakeholder groups, and finally the “Principles of Stakeholder Management,” commonly referred to as the “Clarkson Principles,” brought energy and interest to stakeholder research.

From Instrumental Stakeholder Theory to Stakeholder Capitalism

2021 ◽  
Author(s):  
André O. Laplume
Keyword(s):  
Competitive Advantage ◽  
Business Model ◽  
Stakeholder Theory ◽  
Stakeholder Management ◽  
Stakeholder Groups ◽  
The Creation ◽  
New Entrants

Instrumental stakeholder theory posits that managing for stakeholders using justice-based approaches produces competitive advantage for firms. However, achieving the ideals of stakeholder management may be challenging, and for some firms, unrewarding. Yet, when firms fail to manage for stakeholders, they contribute to stakeholder marginalization, a condition in which stakeholders feel unfairly treated and begin to scan for alternative arrangements with other firms. Stakeholder marginalization creates opportunities for competitors, but especially for new entrants, to pursue stakeholder innovation. Stakeholder innovation involves the creation of a business model that caters to marginalized stakeholder groups in a new way, by improving perceived conditions for those stakeholders (e.g., customers, employees, suppliers, or communities). Stakeholder innovations can threaten incumbencies as their ecosystems bloom and technologies improve, and they can start to draw a greater variety of resources away from incumbent networks. Because it can help to explain and predict both incumbent and new entrant behaviors, stakeholder capitalism is a useful frame for theorizing in the disciplines of management and entrepreneurship.

Evidence of an Inverted U–Shaped Relationship between Stakeholder Management Performance Variation and Firm Performance

2021 ◽  
pp. 1-27
Author(s):  
André O. Laplume ◽  
Jeffrey S. Harrison ◽  
Zhou Zhang ◽  
Xin Yu ◽  
Kent Walker
Keyword(s):  
Firm Performance ◽  
Stakeholder Theory ◽  
Positive Relationship ◽  
Stakeholder Management ◽  
Management Performance ◽  
Firm Level ◽  
Performance Variation ◽  
Considerable Debate ◽  
Firm Investments ◽  
The Subject

Empirical research is largely supportive of the assertion of instrumental stakeholder theory that a positive relationship exists between “managing for stakeholders” and firm performance. However, despite considerable debate on the subject, the amount of variation across firm investments in stakeholders (stakeholder management performance) has not been adequately investigated. We address this gap using a sample of more than eighteen thousand firm-level observations over ten years. We find evidence to support an inverted U–shaped relationship between variation in stakeholder management performance and Tobin’s q, suggesting that firms that have some imbalance in their stakeholder management, but not too much, perform best. We discuss the implications of our study for instrumental stakeholder theory and managerial practice.

Business Ethics as a Tool for Competitive Advantage in the Banking Industry in Nigeria

2013 ◽  
Vol 35 (1) ◽  
pp. 23-32 ◽  
Author(s):  
Ann I. Ogbo ◽  
Itanyi Okechukwu ◽  
Wilfred I. Ukpere
Keyword(s):  
Business Ethics ◽  
Competitive Advantage ◽  
Banking Industry

Effect of phenology on agonistic competitive interactions between invasive and native sheet-web spiders

2016 ◽  
Vol 94 (6) ◽  
pp. 427-434 ◽  
Author(s):  
Jeremy D. Houser ◽  
Adam H. Porter ◽  
Howard S. Ginsberg ◽  
Elizabeth M. Jakob
Keyword(s):  
Competitive Advantage ◽  
Native Species ◽  
Negative Impact ◽  
Relative Size ◽  
Agonistic Interactions ◽  
Resident Species ◽  
The Third ◽  
Linyphia Triangularis ◽  
Size Interaction ◽  
Very High

The phenologies of introduced relative to native species can greatly influence the degree and symmetry of competition between them. The European spider Linyphia triangularis (Clerck, 1757) (Linyphiidae) reaches very high densities in coastal Maine (USA). Previous studies suggest that L. triangularis negatively affects native linyphiid species, with competition for webs as one mechanism. We documented phenological differences between L. triangularis and three native species that illustrate the potential for the reversal of size-based competitive advantage over the course of the year. To test whether relative size influences interaction outcome, we allowed a resident spider to build a web and then introduced an intruder. We examined whether the outcomes of agonistic interactions over the webs were influenced by the species of the resident (invasive or native), the relative size of the contestants, and the species × size interaction. We found that the importance of relative size differed among species. In interactions between L. triangularis and each of two native species, size played a greater role than resident species on the outcome of interactions, suggesting that competitive advantage reverses over the season based on phenology-related size differences. Linyphia triangularis had a negative impact on the third species regardless of relative size.

STAKEHOLDER THEORY AND COMPETITIVE ADVANTAGE.

2007 ◽  
Vol 2007 (1) ◽  
pp. 1-6 ◽  
Author(s):  
JEFFREY S. HARRISON ◽  
DOUGLAS BOSSE ◽  
ROBERT A. PHILLIPS
Keyword(s):  
Competitive Advantage ◽  
Stakeholder Theory

scholarly journals Technical innovation: trigger or threat for organizational learning? A curvilinear relationship revisited

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
M. Teresa Ortega Egea ◽  
María Isabel Roldán Bravo ◽  
Antonia Ruiz Moreno ◽  
Carmen Haro Domínguez ◽  
Dainelis Cabeza Pullés
Keyword(s):  
Organizational Learning ◽  
Technical Innovation ◽  
Curvilinear Relationship ◽  
Organizational Complexity ◽  
Content Type ◽  
Innovation Activities ◽  
The Relationship ◽  
Practical Implications ◽  
Very High ◽  
Curvilinear Effect

Purpose Although most research considers organizational learning as an antecedent of innovation, the relationship is complex and could be reciprocal. Therefore, more research is needed on the profit gained from the learning and organization acquires from its innovation activities. Using the concept of fit, this paper aims to investigate whether organizational learning increases when an organization’s technical innovation level exceeds that of its competitors (positive misfit), theorizing the curvilinear effect of positive technical innovation misfit on organizational learning. Design/methodology/approach This paper uses regression analysis with survey data gathered from 202 European firms. Findings The findings support the argument that positive technical innovation misfit has an inverted-U shaped effect on organizational learning. Practical implications The findings obtained should orient firm managers to developing a work environment that enables optimal levels of technical innovation and learning – levels at which the technical innovation developed drives learning among the organization’s members but avoids becoming trapped in the organizational complexity involved in very high levels of positive technical innovation misfit. Originality/value This study resolves conflicting views of the relationship between organizational learning and technical innovation and adds to the existing literature that indicates that proactive innovative firms can fail when becoming learners.

Corporate social responsibility in sport: Stakeholder management in the UK football industry

2010 ◽  
Vol 16 (4) ◽  
pp. 566-586 ◽  
Author(s):  
Geoff Walters ◽  
Richard Tacon
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Stakeholder Theory ◽  
Stakeholder Management ◽  
Professional Football ◽  
Football Club ◽  
Wide Range ◽  
The Uk ◽  
Corporate Social ◽  
Football Industry

AbstractCorporate social responsibility (CSR) has become increasingly significant for a wide range of organisations and for the managers that work within them. This is particularly true in the sport industry, where CSR is now an important area of focus for sport organisations, sport events and individual athletes. This article demonstrates how CSR can inform both theoretical debates and management practice within sport organisations. It does so by focusing on stakeholder theory, which overlaps considerably with CSR. In this article, stakeholder theory is used to examine three major CSR issues: stakeholder definition and salience, firm actions and responses, and stakeholder actions and responses. These three issues are considered in the context of the UK football industry. The article draws on 15 semi-structured qualitative interviews with senior representatives from a number of different organisations. These include the director of a large professional football club; a chief executive of a medium-sized professional football club in addition to the supporter-elected director; and the vice-chairman of a small professional football club. Additional interviews were undertaken with five representatives from national supporter organisations, two board members at two large supporter associations, two representatives from the Football League, one representative from the Independent Football Commission, and a prominent sports journalist. The analysis of the interview data illustrates ways in which CSR can be implemented by sport organisations through stakeholder management strategies. The article concludes that stakeholder theory has both conceptual and empirical value and can be used to illuminate key issues in sport management.

scholarly journals The Effect of Re-engineering of Administrative Processes in Achieving the Competitive Advantage of Sustainable in Five-Star Hotels in Jordan - Field Study

2019 ◽  
Vol 11 (1) ◽  
pp. 96
Author(s):  
Suleiman Mustafa EL-Dalahmeh
Keyword(s):  
Information Technology ◽  
Statistical Analysis ◽  
Standard Deviation ◽  
Competitive Advantage ◽  
Organizational Communication ◽  
Sustainable Competitive Advantage ◽  
Statistical Effect ◽  
The Mean ◽  
Level Of Significance ◽  
Very High

The main aim of the research was to identify the effect of Re-engineering of Administration Processes in Achieving the competitive Advantage of Sustainable in Five Star Hotels in Jordan. To achieve the objective of this study, a questionnaire distributed on 120 persons in Five Star Hotels in Jordan. 90 returned with a rate of 75%. The results of the study showed that there is a significant statistical effect at the level of significance of α ≤ 0.05 for the re - engineering of administrative processes in achieving sustainable competitive advantage in five - star hotels in Jordan in the following dimensions:* - Leadership * - Ability to analyze * - Advanced design * - Organizational communication * - Continuous improvementStrategic Planning. The total score of the mean of the study instrument was 4.43 and with a standard deviation of 0.35 and 88.6% at a very high degree.The results of the statistical analysis revealed the realization of the sample of the study in the investigated hotels, the extent of the effect of re-engineering the administrative processes in all its dimensions in achieving the competitive advantage.Based on the results of hypotheses tested, the six null hypotheses of the study were rejected. In the light of the findings, the researcher recommended that:1- The need to convince the management of hotels and hotel staff the importance of the application of re-engineering of administrative processes to achieve competitive advantage sustainable2- Utilizing the potential of graduates of new universities from the faculties of economics, administrative sciences and information technology. 

Sign in / Sign up

Export Citation Format

Share Document