Session 218

Willing and able to engage? Firm interactions with their stakeholders.

Track M

Date: Tuesday, September 23, 2014


Time: 08:00 – 09:15


Room: Rotterdam

Session Chair:

  • Torben Juul Andersen, Copenhagen Business School

Title: Responding to the Challenge of Uncertainty: Stakeholder Sensing and Prediction of Emergent Strategic Issues


  • Lasse Peter Laursen, Copenhagen Business School
  • Carina Antonia Hallin, Copenhagen Business School
  • Torben Juul Andersen, Copenhagen Business School

Abstract: We develop a conceptual framework of strategic responsiveness under uncertainty incorporating microfoundational sensing and seizing capabilities of dynamic capabilities. By definition uncertainty represents environmental conditions that are hard to foresee, which can catch the unprepared by surprise while presenting opportunities to the conscious organization. We argue that by aggregating stakeholder sensing and predictions of operational conditions across multiple levels, the firm can identify emergent strategic issues and formulate faster and more effective responses in the face of uncertainty and unpredictability. This suggested operational model provides corporate decision-makers with a proactive approach for timely and effective strategic responses to seize viable solutions to identified strategic issues.

Title: Stakeholder Engagement Capabilities to Explain M&A Performance Differences


  • Emanuele Bettinazzi, EMLYON

Abstract: Prior literature based on KBV highlighted acquiring firm’s capabilities as key prerequisites for managing acquisition processes successfully and for capturing economic benefits. However, acquiring firm’s capabilities have been prominently studied by adopting an internal perspective, often neglecting relational capabilities. This paper looks at the acquiror’s capabilities to manage the acquisition processes and suggests that they are influenced by capabilities to manage relationship with stakeholders. We contend that heterogeneity in stakeholder engagement capabilities (SEC) of acquirors can help explaining heterogeneity of their performances in acquisition activities. Moreover we theorize that stakeholder engagement capabilities differ across different categories of stakeholders and their effects of acquisition capabilities are not homogenous. We tested our predictions on a sample of 5,462 acquisitions undertaken by US firms between 2000 and 2010.

Title: The Reconciliation of Agency and Stewardship Theories: Why Neither Theory Alone can Satisfy the Expectations of Internal Stakeholders


  • Monica Franco-Santos, Cranfield University
  • Michael Nalick, Texas A&M University
  • Luis Gomez-Mejia, Notre Dame University
  • Pilar Rivera-Torres, University of Zaragoza

Abstract: Agency and stewardship theories are often presented as opposed or contradictory. Scholars postulate that organizations either adopt stewardship-derived internal governance mechanisms or agency-derived internal governance mechanisms but not both. This paper suggests an alternative view. It argues that agency and stewardship governance orientations can coexist within an organization because internal governance mechanisms should fit the nature of various employment roles (i.e. tasks characteristics). Thereby, in collecting survey data from 1,017 staff from United Kingdom Higher Education Institutions, this study empirically tests the underexplored influences of organizational governance on internal stakeholders.

Title: Understanding the Stakeholder Legitimacy Undermining Rhetoric (SLUR): Firm Responses to Social Disapproval in Emerging Industries


  • Chethan Srikant, Western University
  • Jean-Philippe Vergne, University of Western Ontario

Abstract: In this study, we develop a nuanced understanding of firm responses to social disapproval in emerging industries, characterized by market unpredictability and institutional instability. We introduce the concept of ‘Stakeholder Legitimacy Undermining Rhetoric’ (SLUR) and distinguish between direct SLUR (challenging the stakeholder directly) and Indirect SLUR (challenging the issues the stakeholders raise). Drawing upon Resource Dependency Theory and using the context of the emergence of LNG import terminals in the USA, we develop and test hypotheses that advance our understanding of SLUR. Preliminary evidence confirms that direct SLUR is impacted by stakeholder groups’ potential for distraction and the relationship is moderated by the perceived economic benefit from the LNG project. Indirect SLUR is impacted by the diversity of stakeholder groups coalescing towards a particular issue.

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