The effect of stakeholder culture on managers’ perceptions of stakeholder attributes in Australian not‐for‐profit organizations

Abstract

We examine the relation between stakeholder culture and managers’ perceptions of stakeholder attributes of power, legitimacy, and urgency in Australian not‐for‐profit (NFP) organizations. Examination of this relation is important because managers’ perceptions of stakeholder attributes determine how stakeholder relationships are managed, which affects (positively or negatively) the ability of NFP organizations to fulfil their social mission. Data were collected through a survey of top managers of 478 NFP organizations. Our results show that the stakeholder cultures of altruist and instrumentalist, manifesting different moral values, differentially affect NFP managers’ perceptions of the three stakeholder attributes for clients and government. Specifically, an altruist stakeholder culture affects managers’ perception of client legitimacy, while an instrumentalist culture affects managers’ perception of government power. We also investigate the mediating effects of power and legitimacy on the relation between stakeholder cultures and urgency. We find that managers’ perceptions of power and legitimacy act as crucial cues for managers to perceive stakeholder urgency. Our study contributes to the stakeholder management literature and has important implications for managers of NFP organizations in managing stakeholder relationships in the contemporary environment.

Multifaceted not‐for‐profit accountability: Its measurement, cultural context, and impact on perceived social performance

“…This is because (a) upward mechanisms (e.g. reporting and evaluation) are essential to ensure funding compliance, especially under the formal funding agreements with governmental agencies and institutional donors (Chen et al., 2020; Jiao, Harrison, & Chen, 2020; Verbruggen, Christiaens, & Milis, 2011) and (b) these mechanisms serve as an important platform for engagement and dialogue with funders so that their expectations can be better understood and met (O'Dwyer & Boomsma, 2015). As such, the use of upward accountability mechanisms helps maintain funding continuity.…”

Governing a union's external stakeholders: A prioritization method based on relationship quality and perceived impact

“…The need to prioritize is especially pressing as the organization grows and has more and more stakeholders to manage. However, other factors favor prioritization: the culture of the stakeholders and the organization (Jiao et al 2020), the leaders' perceptions and strategies (Schubert and Willems 2020), or the pressure of the environment, including crises (Gonzalez-Perez et al 2021). To prioritize, various criteria can be used.…”

“…However, other factors favor prioritization: the culture of the stakeholders and the organization (Jiao et al. 2020), the leaders’ perceptions and strategies (Schubert and Willems 2020), or the pressure of the environment, including crises (Gonzalez‐Perez et al. 2021).…”