Under pressure: Finding organizational legitimacy through the supply chain

Abstract

This study analyzes whether firms face a tradeoff in responding to pressures of shareholders versus stakeholders in their quest for supply chain management excellence. Are firms that are recognized and rewarded for their supply chain management practices less likely than other firms to have a strong record in community relations, product qualities, employee relations, environmental sustainability and diversity measures? To answer this question, the study utilizes event study, OLS regression and panel data analyses of firms receiving a Gartner Supply Chain Top 25 ranking and a comparative sample of these same firms in non-ranked years. The findings indicate that shareholders react positively to a Gartner ranking, suggesting that ranked firms receive significant incentives to pursue recognition. Additionally, positive stakeholder practices are significantly stronger for firms ranked versus those not ranked. These findings suggest that firms can successfully navigate the pressures congruent with both shareholder and stakeholder priorities through supply chain excellence.

Institutional isomorphic pressures: the impact for women on boards

“…Larger firms have more resources at their disposal for both recruitment and retainment purposes. Larger firms are also more visible and more often in the public spotlight, leading to increased public pressure and scrutiny (Arthur and Cook, 2009;Ingersoll et al, 2019Ingersoll et al, , 2023. Firm size was recorded as the number of employees in thousands, as reported in the Compustat database.…”