When More is Not Better: Complementarities, Costs and Contingencies in Stakeholder Management

García‐Castro, Roberto; Francœur, Claude

doi:10.2139/ssrn.2482946

Cited by 29 publications

(69 citation statements)

References 59 publications

(107 reference statements)

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“…Second, the cognitive barriers within the firm, engendered by strong FE stakeholder relationships, create such limitations and trade‐offs in innovation. While economic cost–benefit trade‐offs of stakeholder orientation have been theorized and examined (e.g., Garcia‐Castro & Francoeur, ), our study's provides insight by combining arguments from March () with stakeholder theory and offers a new perspective for examining these trade‐offs.…”

Section: Discussionmentioning

confidence: 87%

“…Stakeholder theorists have argued that a “minimum threshold” of stakeholder engagement needs to be passed before such relationships become credible and have effects on stakeholder commitment and behavior. In addition, stakeholder relationships tend to have an additive effect (Garcia‐Castro & Francoeur, ). That is, low levels of strength may have little effect in inducing innovation‐related behavioral changes in the firm's employees.…”

Section: Hypothesesmentioning

confidence: 99%

See 1 more Smart Citation

Being too good for your own good: A stakeholder perspective on the differential effect of firm‐employee relationships on innovation search

Gambeta

Koka

Hoskisson

2018

Strategic Management Journal

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Research Summary: A firm's stakeholder orientation toward its employees is argued to be beneficial for firm outcomes. However, this orientation may also have disparate impacts on particular behaviors and outcomes, such as local versus distant search, which impose contradictory firm requirements. We find that while a strong firm–employee relationship leads to increasingly higher levels of local search (exploitation), it also leads to increasingly lower levels of distant search (exploration). In additional supplementary analyses, we find similar disparate effects on the productivity of innovation and its market value, as well as a moderating effect of the firm's relationship with other stakeholders which exacerbates both the positive and negative impacts of firm–employee relationships. We discuss the implications of these findings for both the innovation and the instrumental stakeholder literatures. Managerial Summary: Motivating employees toward generating new ideas and innovations is an important challenge for most firms. Establishing the firm as a trustful and good partner for employees may engender in them the commitment and willingness to invest in such activities. However, questions remain as to how “well” the firm should “treat” its employees, and the potential adverse consequences from over‐investing in such relationships. This paper examines these important practical questions and finds that establishing strong relationships with employees can be simultaneously beneficial and harmful for the firm depending on the type of new ideas it seeks. We find that such strong relationships helps with motivating employees to build on and perfect existing knowledge, but is harmful with respect to bringing in new and unfamiliar knowledge.

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Section: Discussionmentioning

confidence: 87%

Section: Hypothesesmentioning

confidence: 99%

Being too good for your own good: A stakeholder perspective on the differential effect of firm‐employee relationships on innovation search

Gambeta

Koka

Hoskisson

2018

Strategic Management Journal

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“…KLD rates firms across a range of governance‐ and socially‐oriented initiatives and is commonly used to capture a firm's stakeholder strategy based on its degree of engagement in such initiatives (Chin et al, ; David et al, ; Flammer & Kacperczyk, ). KLD is widely considered the best and most comprehensive data source available for measuring stakeholder actions (e.g., Barnett & Salomon, ; Garcia‐Castro & Francoeur, ; Petrenko et al, ; Tang et al, ) and is used by both the academic and investment communities, thus allowing our findings to be understood outside of academic circles (Chatterji & Toffel, ; Chin et al, ).…”

Section: Methodsmentioning

confidence: 99%

“…This omission is critical, as the pursuit and scope of stakeholder strategies can vary greatly, ranging from being narrowly focused on one or a few stakeholders to being more widely focused on a diverse set of stakeholders (Agle, Mitchell, & Sonnenfeld, ; Freeman, ). Indeed, due to the tenuous and uncertain relationship between stakeholder strategy and firm performance (e.g., Garcia‐Castro & Francoeur, ; Hafenbrädl & Waeger, ), no consensus stakeholder strategy has emerged, and debate persists regarding how firms should best engage with stakeholders (Khurana, ; Stout, ). It also means that we know relatively little about why CEOs pursue and implement different stakeholder strategies.…”

Section: Introductionmentioning

confidence: 99%

Serving differently: CEO regulatory focus and firm stakeholder strategy

Gamache

Neville

Bundy

et al. 2020

Strategic Management Journal

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“…The more pronounced the upfront theoretical expectations, the higher the consistency measure that should be used. As Maggetti and Levi‐Faur (, p. 199) argue: “exploratory analysis requires lower consistency than rigorous hypothesis testing.” Because the authors conducted an inductive study without upfront hypotheses, they set the consistency threshold at the generally accepted minimum recommended value of .75 (Garcia‐Castro and Francoeur, ; Ragin, ; Schneider and Wagemann, )…”

Section: Methodsmentioning

confidence: 99%

Governing Collaborative New Product Development: Toward a Configurational Perspective on the Role of Contracts

Faems¹,

Schleimer²

2017

J of Product Innov Manag

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This study inductively explores the interplay among different contractual functions and their impact on project performance in collaborative new product development (NPD) projects. Applying a configurational perspective, contracts are conceptualized as bundles of different functions. In line with the notion of discriminating alignment, an explicit distinction is made between different contextual settings in terms of innovation objectives (i.e., incremental versus radical) and relational embeddedness (i.e., presence versus absence of prior collaboration) in the exploration of the project performance implications of different contractual configurations. Fuzzy set qualitative comparative analyses on a sample of 125 collaborative NPD projects helped to generate propositions on the interplay between different contractual functions across different contextual settings. The results indicate that the contractual coordination function is an important function in achieving high project performance in collaborative NPD projects. However, the research findings demonstrate that it is not a sufficient condition and needs to be complemented with discrete safeguarding functions depending on the particular context. Together, these findings provide new insights into how particular combinations of contractual functions can help address the core governance challenges of collaborative NPD. They also point to the relevance of applying a configurational perspective to the study of the role of contracts in management research. Finally, they provide practitioners with specific recommendations concerning the design of contracts for collaborative NPD projects.

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When More is Not Better: Complementarities, Costs and Contingencies in Stakeholder Management

Cited by 29 publications

References 59 publications

Being too good for your own good: A stakeholder perspective on the differential effect of firm‐employee relationships on innovation search

Being too good for your own good: A stakeholder perspective on the differential effect of firm‐employee relationships on innovation search

Serving differently: CEO regulatory focus and firm stakeholder strategy

Governing Collaborative New Product Development: Toward a Configurational Perspective on the Role of Contracts

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