Stakeholder Theory Perspective Research Articles

Discovering and nurturing local key stakeholders’ talent in emerging economies: using fsQCA to test the external human resources approach

In the global talent management (TM) field, scholars are calling for distinct and extended human resource (HR) architecture and systems facilitating the management of local talent. To answer to these calls, we adopted a stakeholder theory perspective that responds to five main criticisms of talent management in emerging markets (EMs). Based on that, we identified five main characteristics (purpose-driven organisation; translation attitude; empowerment-based engagement; cross-country relationship network; external HR approach) that could facilitate effective discovery and nurturing of local talent. Our study aimed to investigate if and what configuration of characteristics exists to enable MNEs to develop an effective talent management strategy of key local stakeholders for broader economic, social and environmental value creation, supported by the strategic HR management literature. We performed a fuzzy set Qualitative Comparative Analysis of 20 training projects addressed to local key stakeholders in various industries and emerging countries. We demonstrate that the successful path for effective TM in EMs includes all five characteristics and our novelty lies in the discovery that to achieve effective TM in EMs, MNEs must consider local key suppliers and contractors as part of the organisation, forging what we call an external HR approach.

The Impact of CEO Duality and Financial Performance on CSR Disclosure: Empirical Evidence from State-Owned Enterprises in China

This paper studies the effects of a firm’s financial performance (FP) and chief executive officer’s (CEO) duality on the quality of corporate social responsibility (CSR) disclosure in the context of state-owned enterprises (SOEs) among Chinese A-share-registered companies. The results depict a negative relationship between CEO duality and CSR disclosure. Our results demonstrate that better-performing firms disclose CSR information more frequently and of higher quality compared with firms with poor financial performance. This role of financial performance in the quality of CSR disclosure is generally valuable in public enterprises; however, it is relatively sluggish in state-owned enterprises the outcomes indicate that the dual leadership structure reduces assessments and renders CEOs less liable to their stakeholders. Therefore, this study offers valuable information and details for regulators to improve corporate governance and CSR from the perspective of stakeholder theory.

Firm specific characteristics and voluntary disclosure: evidence from a developing country

This paper assesses the levels of voluntary disclosure in the annual reports of companies in Sri Lanka, a developing country, and identifies firm-specific characteristics that impact on voluntary disclosure of the listed companies in Sri Lanka. Eight variables, representing firm specific characteristics, were tested to assess the levels of disclosure of 100 listed companies. The study adopts a disclosure checklist consists with 20 variables to identify the levels of disclosure. The relationship between firm specific characteristics and the level of disclosure was examined using unranked Ordinary Least Square approach. The findings of the study were analyzed using a stakeholder theory perspective, which attempts to explain why management will meet the expectations of certain stakeholders, typically those in a position of power or influence. Findings reveal that four variables namely firm size, profit margin, leverage and audit firm size are positively and significantly associated with the level of disclosure. This means that large size companies have more interest in disclosing additional information as compared to small size companies. Further, firms with a high profit margin disclose more information than firms with a low profit margin. Moreover, debt capital holders and large audit firms have more influence to encourage companies to disclose voluntary information. The results of this study are useful for the managers and investment community to assist in evaluating the extent of voluntary disclosure by Sri Lankan listed companies and explaining the variation of disclosure. Further, the results provide useful insights to policy makers and regulators who may want to improve voluntary disclosures in their countries, especially in Sri Lanka.

Does a retailer's performance depend on CSR practices? A stakeholder theory perspective from developing economy

PurposeThe study aims to examine the relationship between retailer's performance and corporate social responsibility (CSR) practices in Indian context. The article introduces a new conceptual model considering the parameters as per the stakeholder theory perspective.Design/methodology/approachThe authors conducted empirical research with CSR practices (CSRP) and other parameters to evaluate the retailers' performance using stakeholder theory. The authors present the results from 292 valid responses from the Indian retailers. The study used structured equation modeling (SEM) to present the analysis and the results.FindingsFindings indicate that CSRP along with additional constructs loyalty (L), reputation (R), customer satisfaction (CS) and competitive advantage (CA) have positive and significant impact on organizational performance (OP).Practical implicationsThe framework will serve as a guiding tool to the management of the retail outlets to examine carefully the link among CSRP with other variables presented in the study and subsequently to the retail outlet performance. The retailers must be more focused on the expectations and demands of the customers concerning products and services for better growth of the firms.Originality/valueThe uniqueness of the study lies in “CSR practices enabled integrated model” to examine the performance of the organizations. The proposed theoretical model would add value to the existing literature to help the retailers in process of their performance improvement.

Blockchain adoption in the maritime supply chain: Examining barriers and salient stakeholders in containerized international trade

This study aimed to investigate the relationships between blockchain adoption barriers and identified the salient stakeholders for blockchain adoption in containerized international trade. The interpretative structural modelling and Cross-Impact Matrix Multiplication Applied to Classification analyses indicated that the most impactful among the eight barriers are lack of support from influential stakeholders, lack of understanding regarding blockchain, and lack of government regulations. The stakeholder mapping analysis demonstrated that the high salient stakeholders among 11 legitimate stakeholders are container lines, ports, beneficial cargo owners, freight forwarders/third party logistics, and customs authorities. The study is original and contributes to theory and practice as it uncovers both impactful barriers and critical stakeholders by adopting a stakeholder theory perspective and offers significant implications to practice, policy, and theory by combining these two analyses.

Uncovering the impediments to successful built heritage management using stakeholder analysis

PurposeThe purpose of this paper is to understand various organizational and operational impediments to successful built heritage management at a regional level from the perspective of stakeholder theory.Design/methodology/approachAn exploratory study was conducted in Jammu city of India wherein total of 16 interviews using a semi-structured questionnaire were done with officials (N = 6), organization members (N = 7), local organization heads (N = 3) and 30 local residents. Thematic analysis and stakeholder analysis were used to identify themes and examine the relationships between stakeholders.FindingsSix themes were derived from thematic analysis. The results from stakeholder attribute analysis and studying stakeholder interactions show that lack of trust, skewed power relation and lack of communication among stakeholders are some of the factors that hinder successful heritage management at the Mubarak Mandi heritage complex. The study emphasizes the dimension of “authenticity” be added to existing discourse of heritage management in India ensuring commoditization does not override authenticity and integrity of heritage site.Originality/valueThe results of this study are useful in understanding challenges of heritage management in India at regional level. Using stakeholder analysis the study adds a managerial perspective to the existing heritage management discourse in India by providing empirical insights into developing stakeholder collaboration.

Sustainable Management of Human Resources and Stakeholder Theory: A Review

Sustainable Human Resource Management aims to aggregate and assist in implementing sustainable strategies and improving engagement and relationships with all stakeholders. This systematic literature review aims to understand the concepts and the association of Sustainable Human Resource Management with Corporate Social Responsibility and Corporate Sustainability from the Stakeholder Theory perspective, using the Scopus database. We found an increase in research for Sustainable Human Resource Management, which is the evolution of Green Human Resource Management. SHRM is relevant to management approaches aimed at sustainability. It has a broad view of dimensions, being focused on its employees and the socio-environmental and economic impact of the organization, considering the organization’s relationship with all stakeholders.

Implementation of CSR Activities from Stakeholder Theory Perspective in Wika Mengajar

The purpose of this research is to explore Corporate Social Responsibility (CSR) activities in the stakeholder theory point of view in the WIKA Mengajar program. The needs of stakeholders both internally and externally in relation to social and environmental responsibility through the triple bottom line model is one way to explore CSR activities. This research was conducted using phenomenological methods with a qualitative approach at PT Wijaya Karya (Persero) Tbk. (WIKA). Interviews are conducted with the General Manager of Corporate Relations, collecting evidence in the form of documentation and articles of activities that are then simplified to produce relevant information. The results of the study showed the benefits of CSR through the point of view of internal stakeholder theory of the company always maintaining commitment and meeting the needs of stakeholders both internally and externally, in this case WIKA shows social and environmental responsibility that includes economic, social, and environmental aspects (triple bottom line) through CSR activities.

Optimal trade-offs in decision-making for sustainability and resilience in manufacturing supply chains

Today's competitive supply chains can focus on achieving sustainability and resilience. In this research, we observe the contradictory principles underlying sustainability and resilience to analyze the trade-offs among them, considering the firm's capabilities. These trade-offs were examined and further explained using several organizational theories. We employ a methodology using grey target decision-making and trade-off implementation model to study the significant objective contradictions, while practicing sustainability and resilience for firms and their supply chains. The model has been practically implemented for three case electronics manufacturing companies. On interpreting the results of the case implementation, it can be realized that the case firms prefer to implement sustainable and resilience strategies with more or less equal priorities. Hence, it is evident from the results that whenever an objective contradiction occur, the case firms prefer to implement strategies to benefit both the objectives with slightly greater priority weighting assigned for that objective, which is more matching with their business motto. Considering a stakeholder theory perspective, organizations are recommended to understand the stakeholders' choices that can influence the focus on sustainability or the focus on resilience of firms or their supply chains. In practice, managers can employ the proposed decision-making and trade-off implementation model for identifying and prioritizing the contradictory attributes of sustainability and resilience.

Sport organizations and reconciliation in Australia

Sport can be a driver of change, promoting social cohesion and inclusion. However, it can also create conflict and be arena of discrimination and divide. This article explores the current mobilization of Australian sport organizations in contributing to reconciliation between Aboriginal and Torres Strait Islander peoples and non-Indigenous Australians. This study focuses on the formal commitment of sport organizations to the reconciliation process. Through a stakeholder theory perspective and a shared value lens, 22 Reconciliation Action Plans (RAPs) were examined using text analytics and visualization software, Leximancer. It is concluded that, while continuing their regular business, sport organizations can be advocates of social justice and a RAP can contribute to the organization’s stakeholder ecosystem and guide its management processes and activities. However, questions remain as to how measurable and impactful the strategies and activities are, particularly in the mitigation of racism in Australian sport.

Calibration of stakeholder influence in the UK higher education sector

ABSTRACT Over the last 20 years, the UK Higher Education sector has experienced a significant change to its funding base with a shift away from government funding, to operating within a highly competitive marketised environment. This shift has impacted the governance and management structures within the sector, with universities encouraged to adopt a more corporate and managerial style. Moreover, over this period, universities have evolved and adapted to social, economic, environmental and technological changes, necessitating a change in dialogue with the large number of internal and external stakeholders who influence Higher Education policy as well as university practices and operations. Adopting a Stakeholder and Resource Dependency Theory perspective, this paper seeks to calibrate the changing influence and importance of these stakeholders. The paper analyses a survey of 22 university secretaries (In the UK Higher Education setting, the university secretary is responsible for the effective governance of the university and for its professional services. In recent years, several UK universities have changed the title of this role from university secretary to Chief Operating Officer (COO), or to University Secretary and Chief Operating Officer, which is more common internationally.) conducted in mid-2020, and the results show that academic staff and students are seen as the most influential internal stakeholders as the quality of teaching and research is vital to the reputation and attractiveness of the university in a global market. Undergraduate home students are seen as the most influential student group due largely to the numbers enrolled, followed by international postgraduate taught students, an outcome consistent with resource dependency theory. UK and devolved governments (Devolution occurs when a central government delegates power to a region, providing it with autonomy to make legislation relevant to the area, whilst keeping it under national control. In the UK, devolved powers were granted to Scotland, Wales and Northern Ireland from the UK Westminster Government following referenda in each region in the late 1990s. The devolved governments of Scotland, Wales and Northern Ireland have control over a wide range of policy areas and have the authority to pass their own legislation in relation to them. One such devolved policy area is education. Other devolved policy areas include health services, law, and the environment.) are seen as the most influential external stakeholder reflecting their role in university funding and in setting Higher Education policy and regulation, an influence that has increased over the past two decades. The influence of financial stakeholders has also grown over the past two decades.

Sustainability and ecotourism principles adoption by leading ecolodges: learning from best practices

ABSTRACT This study identified best practices in the sustainable management of leading ecolodges around the world based on a qualitative content analysis of sustainability communications. Sixty-five top global ecolodges were identified and analyzed according to (1) independent third party ecolodge designations, and (2) a conceptual framework of ecolodges based on a rigorous definition of ecotourism, emphasizing a nature-based focus, education, sustainability (conservation and community involvement/benefits), and moral imperative dimensions. Key themes within these dimensions included biodiversity conservation, preserving socio-cultural heritage, improving social wellbeing, contributing to the local economy, learning opportunities for guests, influencing local attitudes, creating opportunities for visitors to get involved, sharing profits with local people, social justice, and seeking third-party recognition. This study contributes to the expanding base of literature on ecolodges by investigating best practices within each core dimension of ecotourism and evaluating these through corporate social responsibility and stakeholder theory perspectives.

Multiple-dimensions of corporate social responsibility and global brand value: a stakeholder theory perspective

ABSTRACT Corporate social responsibility (CSR) offers an important strategic tool for enhancing firms’ competitive advantage and legitimacy. With an application of stakeholder theory, this study considers how multiple dimensions of CSR might affect global brand value differently, as well as the potential impact of firm size on the relationships of diverse CSR activities with global brand value. As its primary contribution to extant literature, this article establishes how a firm’s involvement in diverse CSR activities can influence its global brand value, according to its primary stakeholders’ perspectives, on the basis of cross-country, cross-industry data sets reflecting 144 global brands across 17 countries.

Does corporate social performance lead to better financial performance? Evidence from Turkey

<abstract> <p>In the past two decades, research on the relationship between corporate social performance (CSP) and corporate financial performance (CFP) has seen considerable growth; however, evidence from Turkey remains scarce, and the results are not uniform. To address this lack, this study investigates the impact of CSP on CFP from the perspective of stakeholder theory. Following the investigation of 47 publicly listed companies from the BIST Corporate Governance Index (XKURY) in the period 2014–2018. The results demonstrate that CSP positively affects CFP in both the short and long term. This study addresses the lack of Turkish experience, and the results indicate that CSP is an intangible resource in corporate strategy that can improve the competitive power of Turkish enterprises. Furthermore, the study emphasizes the positive role of CSP in short-term and long-term CFP in the Turkish context from the stakeholder perspective. The results have implications for Turkish policymakers regarding the rational use of corporate social responsibility (CSR) to promote economic development and insights for Turkish enterprises in terms of gaining stakeholders' trust and improving investors' valuation through the strategic use of CSR to achieve long-term, sustainable development of enterprise competitiveness and finance.</p> </abstract>

Ownership structure and intellectual capital: empirical evidence for Jordanian listed firms

The main objective of the current study is to examine the impact of ownership structure on intellectual capital (IC) disclosures from a stakeholder theory perspective. The current study employs a disclosure index approach to examine the extent of structural and relational capital disclosures of Jordanian listed firms with data from 2012 to 2018. Ordinary least squares regression models for structural capital, relational capital, and overall IC disclosures are employed. The findings show a negative significant impact of management ownership on relational capital disclosures, a positive impact of foreign ownership on relational and overall IC disclosures, and a positive impact of institutional ownership on all three IC models. Hence, our study suggests that managers are not inclined to provide relational capital disclosures for the benefit of stakeholders. Moreover, it suggests that foreign investors require lower information asymmetry, which leads to measures being taken to enhance IC practices. We believe that our study adds knowledge to the current IC literature since it provides empirical evidence concerning knowledge-based IC disclosures in emerging markets such as Jordan.

Voluntary Human Capital Disclosure and Firm Value Relationship in the Listed Companies of Bangladesh: A Conceptual Overview

The aim of this paper is to incorporate relevant empirical researches and literature for extending the potentials of voluntary human capital disclosure to increase the value of the listed firms in Bangladesh. Voluntary human capital disclosure reduces information asymmetry and increases the financial lucidity of the business, and hence, could minimize agency conflicts, and satisfy employees’ and other stakeholders’ of the business. However, subsequent to a 13.8 percent drop in 2018, the broad index of the Dhaka Stock Exchange Limited lost 17.3 percent in 2019. It is among the first paper focusing on the consequence of voluntary human capital disclosures on firm value from a combination of agency theory, signaling theory, and stakeholder theory perspective. Moreover, extant literature endow with inconsistent and less evidence concerning the relationship of voluntary human capital disclosure with firm value. The present paper proposes and illustrates potential proposition for future empirical investigation in the context of an emerging economy like Bangladesh. It is also expected that the present paper would endow with further knowledge to investors, managers, and other stakeholders to upgrade firm value by means of voluntary human capital disclosure in their corporate reporting practices.

Empirical assessment on factors contributing to integrity practices of Malaysian public sector officers

PurposeIntegrity-related issues are now endemic to public service bureaucracies. It is claimed that corruption in the public sector is very common in various departments/agencies. Lack of integrity will lead to failings in governance and proper oversight of procedures, and subsequently poor financial management and incidents of fraud. Based on the stakeholder theory perspective, this study examines the influences of accountability, risk management and managerial commitment on practices of integrity in the Malaysian public sector.Design/methodology/approachPrimary data were collected through both printed and online questionnaires given to 210 department heads operating within selected Malaysian federal ministries. Data were analysed via the partial least squares-structural equation modelling (PLS-SEM) approach to examine the research hypotheses.FindingsIt is evident that integrity practices in Malaysia's public sector are statistically significantly related to risk management, accountability and management commitment.Practical implicationsThe findings will help the Malaysian federal ministries to take the necessary steps to improve integrity so that dependability and efficiency are the hallmarks of public sector services.Originality/valueTo the best of the authors' knowledge, this study is one of the first to examine the role of accountability, risk management and managerial commitment to integrity in the public sector of a developing market economy.

Boards of directors and corporate sustainability performance: evidence from the emerging East Asian markets

The study examines the influence of board structure on the economic, environmental, and social dimensions of corporate sustainability performance from the perspective of agency theory and stakeholder theory. If a firm’s commitment to sustainable development is to satisfy environmental and social needs and to develop long-term relationships with all stakeholders for sustainable business, we expect that a board of directors would demonstrate their commitment by enhancing all different dimensions of sustainability. Based on a panel analysis of data from the emerging East Asian markets between 2011 and 2016, we identify which board attributes promote corporate sustainability performance and also prove that some attributes fit well with some particular sustainability dimensions. The findings have important implications by identifying the role of corporate boards in sustainability performance and providing a foundation for their efforts to enhance sustainable development.

Effect of CSR and Ethical Practices on Sustainable Competitive Performance: A Case of Emerging Markets from Stakeholder Theory Perspective

An extensive work has been done on corporate social responsibly practices (CSRPs) that mainly emphasized the larger firms within developed nations. Nonetheless, still work is needed to observe the importance of CSRPs’ and ethical cultural practices (ECL) in terms of sustainable competitive performance (SACP) that garnered far less attention by the existing literature. This study explores the impact of CSRPs on SACP with the mediating role of ECL from SMEs of two emerging nations, i.e., China and Pakistan based on stakeholders’ theory and practices. The results using SEM affirmed the positive linkages of CSRPs—environment responsibility (EnvR), community responsibility (ComuR), customers' responsibility (CustR), suppliers responsibility (SupR), employee responsibility (EmpR), and Govt. rules & regulations’ responsibility (GRulR)—on SACP. It found that CSRPs have positive relationships with ECL whereas ECL further positively correlated with SACP in the context of both countries. The findings revealed the positive mediating influence of ECL between CSRPs and SACP, respectively. This study furnishes insightful information for management on how firms may achieve sustainable performance by incorporating ethical cultural practices and corporate social responsibility practices as the strategic tools. The study reports numerous implications for management together with lines for future directions.

Assessing the interrelationship corporate environmental responsibility, innovative strategies, cognitive and hierarchical CEO: A stakeholder theory perspective

AbstractThe objective of the study is to contemplate the effectiveness of cognitive CEO, hierarchical CEO, and innovative strategies on corporate environmental responsibility. Remarkably, the theoretical contribution has been revitalized while signifying the stakeholder theory perspective, which enunciates on the significance of corporate environmental responsibility. For empirical analysis, the data have been collected from the 1,070 listed Chinese firms for the year 2015–2019. The contributable concept of cognitive CEO has been formulated through CEO tenure, education, goodwill, and attainment of tacit knowledge while employing the DAE statistical technique. Hierarchical CEO and its three categorizations have been formulated by analyzing listed companies' profiles. Meanwhile, corporate environmental responsibility has been formulated, signifying the nine environmental attributes. It has been examined that innovative strategies boost corporate environmental responsibility, but its intensity is weak. Specifically, empirical underpinnings also envisage the cognitive CEO as compared to hierarchical CEO or medium hierarchical CEO, the vigorous promoter of corporate environmental responsibility.