"Perceived Legitimacy, Trust and Cooperation in Stakeholder Networks: An Experimental Approach"

Abstract

By drawing on stakeholder theory and social identity theory (SIT), I argue that the perceived legitimacy of stakeholder groups in an issue-based stakeholder network leads to increased trust and cooperation in the corresponding stakeholder relationships. Experimental study 1 (N = 120) provides evidence for these positive consequences of perceived legitimacy among three different sociopolitical issues in Switzerland. Based on SIT’s prediction of positive ingroup discrimination, I hypothesized that these positive relationships between stakeholder legitimacy and intergroup trust or cooperation are contingent on the salience of an individual’s specific stakeholder group in the context of a sociopolitical issue. Experimental study 2 (N= 130) supported this prediction. Further, both experimental studies found evidence that intergroup trust is a mediator of the relationship between the perceived legitimacy and cooperation in issue-based stakeholder relationships. I discuss the results of both studies in the context of value creation in an organization’s issue-based stakeholder networks.