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Why are some firms more effective than others at addressing stakeholder concerns? Conventional stakeholder theories focus on variables in the external environment and cannot adequately explain variance across firms operating in the same context. Our matched-pair study of eight global corporations goes inside the firm and investigates the role of managerial cognition on corporate attention to stakeholders. We find that top management's conceptualization of the firm's relationship with society-which we name enterprise logic-prompts distinct foci of attention and potentially constrains how well a single firm can simultaneously attend to multiple stakeholders. These findings highlight the value of an 'inside-out' perspective, centered on managerial cognition, in explaining why some firms address stakeholder concerns more effectively than their peers.1 Strategy researchers often distinguish the firm's task and general environment. The task environment refers to sectors closest to the organization where relationships are established through direct transactions, for example, with customers. The general environment refers to sectors that affect the organization indirectly (Nadkarni and Barr, 2008) and can include social and political actors, such as governments (Daft, Sormunen, and Parks, 1988).

This paper explores trust-building in multi-stakeholder partnerships. Through an analysis of the development of one multi-stakeholder partnership between a multinational corporation, two levels of government, and local indigenous peoples, we found that trust-building is a dynamic process in which emotionality plays a key role. Critical emotional incidents can unexpectedly punctuate the partnership process, serving as turning points in the development of trust. We also found that the practices used by the partners to navigate these incidents transformed negative emotions into positive ones. We theorize on the role that critical emotional incidents and emotional engagement practices play in multi-stakeholder partnerships.