Abstract
We propose that the informational environment in which firm–stakeholder interactions are embedded shapes the effect of firm–stakeholder dialogue on a stakeholder’s evaluation of a firm. How much stakeholders know about a firm (information availability), what stakeholders know about a firm (information content), and how much they trust the media that informs them (information reliability) vary across countries, firms, and time. We theorize and assess how these three dimensions of the informational environment shape the effects of firm–stakeholder dialogue on the evolution of a stakeholder’s evaluation of a firm differ across them. We illustrate our arguments with insights from field interviews conducted to understand stakeholders’ evaluations of the Rosia Montana gold mine in Romania, and we analyze them using original, manually coded stakeholder-level data that captures 2,454 stakeholders’ evaluations of 26 gold-mining operations around the world.
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