Session 217

Value creation for whom? Stakeholder management and shareholder interests.

Track M

Date: Tuesday, September 23, 2014


Time: 11:00 – 12:15


Room: Estancia 307

Session Chair:

  • Hanna Lehtimaki, University of Eastern Finland

Title: Enterprise- and Corporate-level Strategic Change: The Case of Spain Before and After the Great Recession


  • William Judge, Old Dominion University
  • Manuel Becerra, University of Queensland
  • Raffaele Morandi Stagni, IE Business School

Abstract: Relatively little is known about the influence of the macro-economic context on firm strategies. In addition, even less is known about the inter-relationship between enterprise-level strategies and corporate-level strategies and their combined effects on firm performance. In this study, we examine the multi-level strategies of the largest Spanish firms before and after the Great Recession of 2008-09. Although our findings are preliminary, we find that the firm’s enterprise strategy before the recession is positively associated with subsequent firm performance, and that enterprise strategy interacts with product diversification during the jolt period to influence firm performance. These findings highlight the importance of understanding the firm’s overarching relationship with its stakeholders, as well as the hierarchical nature of strategies chosen.

Title: Stakeholder Management and Leadership Effectiveness: Exploring Institutional Contingencies


  • Yanlong Zhang, Peking University
  • Zhixue Zhang, Peking University
  • Beverly Tyler, North Carolina State University
  • Xiaobei Li, East China University of Science and Technology

Abstract: Research highlights the need to explore institutional contingencies that impact stakeholder management practices. Using a policy-capturing methodology we presented Chinese executives experimentally designed scenarios describing the importance 30 CEO’s place on 12 stakeholder management practices and asked them to assess the effectiveness of the leadership of each CEO. We find that although Chinese executives believe that satisfying the claims of all stakeholders (e.g., shareholders, customers, employees, governments, suppliers, and society) is important for CEO effectiveness, we find that the maximization of shareholders’ interests is still the strongest predictor of Chinese executives’ perceptions of leadership effectiveness. However, institutional influences, which vary at individual, organizational, industrial, and regional levels, moderate the perceived effects of these stakeholder management practices on assessments of CEOs’ leadership effectiveness.

Title: Strategic Stakeholder Management: Value for and Value with Stakeholders


  • Johanna Kujala, University of Tampere
  • Hanna Lehtimaki, University of Eastern Finland

Abstract: This paper seeks to contribute to our understanding of the ways by which firms create sustainable value with and for stakeholders. As a new perspective for understanding strategic stakeholder management, we propose a stakeholder value creation framework. First, we explain how the stakeholder responsiveness framework and the stakeholder value creation framework use different core logics in depicting stakeholder management. We suggest that attention to both stakeholder value and to value creating stakeholder relationships is needed to advance theorizing on strategic stakeholder management.

Title: The Complementarity of Stakeholder and Stockholder Theories


  • Cynthia Clark, Bentley University

Abstract: In this paper, we consider how stakeholder and stockholder views are complementary theoretical assumptions given that both reflect a social paradigm associated with the proper roles and responsibilities of firms. A firm is assumed to adopt expressions and practices that are consistent with either one or the other paradigm. However, these theories of the firm, each associated with different material and symbolic practices represent to some scholars two contradictory theoretical assumptions (Poole & Van de Ven, 1989). As such, they are a paradox but, as we suggest, if this is indeed a paradox it can be managed via a process that involves developing understandings and practices that accept and accommodate tensions (Sundaramurthy & Lewis, 2003). Therefore, our goal is to show how stockholder and stakeholder based views can be used to direct managers to activities that reinforce one another.

All Sessions in Track M...

Sun: 08:00 – 09:15
Session 220: Applying Stakeholder Analysis in the Classroom
Sun: 09:30 – 10:45
Session 221: Global Stakeholder Networks
Sun: 11:15 – 12:30
Session 222: The Questions Stakeholder Theory Does or Could Answer Best
Sun: 15:45 – 17:00
Session 215: Yikes: What Now (Reloaded)?: Firm Responses to Stakeholder Activism
Sun: 17:15 – 18:30
Session 609: Stakeholder Strategy IG Business Meeting
Mon: 11:00 – 12:15
Session 213: What is In It For Us? How Sustainability Matters for Firm Strategy
Mon: 16:30 – 17:45
Session 216: What should we say? The benefits and risks of communication with stakeholders.
Tue: 08:00 – 09:15
Session 218: Willing and able to engage? Firm interactions with their stakeholders.
Tue: 11:00 – 12:15
Session 217: Value creation for whom? Stakeholder management and shareholder interests.
Tue: 15:30 – 16:45
Session 219: Managing or resolving stakeholder issues? Of governments, politics and scandals.
Tue: 17:15 – 18:30
Session 214: Can-do stakeholders? How stakeholders impact CSR and sustainability management.

Strategic Management Society