When Does It (Not) Pay to Be Good? Interplay Between Stakeholder and Competitive Strategies

dc.contributor.authorHe, Ye
dc.contributor.authorChittoor, Raveendra
dc.date.accessioned2023-04-30T15:06:00Z
dc.date.available2023-04-30T15:06:00Z
dc.date.copyright2022en_US
dc.date.issued2022
dc.description.abstractUsing the instrumental stakeholder theory lens, we examine how generic competitive strat- egies influence the link between stakeholder management (SM) and firm financial perfor- mance. We develop a framework that highlights the synergistic effects of a differentiation strategy on SM but also the trade-offs between a cost leadership strategy and SM in their consequences for financial performance. We test our theoretical mechanism further by dis- tinguishing between primary and secondary stakeholders, who differ in their degree of firm specificity and instrumentality. We propose that for firms pursuing a low-cost competitive advantage, secondary SM intensifies the trade-offs between SM and financial performance when compared with primary SM, whereas both primary and secondary SM are likely to improve financial performance for differentiators. Empirical analyses using a panel data set of S&P 500 firms over a 15-year period (2005–2019) and a series of robustness tests support our predictions. Our findings highlight important boundary conditions for SM’s impact on firms’ financial performance and highlight not only “when SM pays” but also “when SM may not pay.”en_US
dc.description.reviewstatusRevieweden_US
dc.description.scholarlevelFacultyen_US
dc.identifier.citationHe, Y. & Chittoor, R. (2022). When Does It (Not) Pay to Be Good? Interplay Between Stakeholder and Competitive Strategies, Journal of Management. https://doi.org/10.1177/01492063221106433.en_US
dc.identifier.urihttps://doi.org/10.1177/01492063221106433
dc.identifier.urihttp://hdl.handle.net/1828/15086
dc.language.isoenen_US
dc.publisherJournal of Managementen_US
dc.subjectcompetitive strategiesen_US
dc.subjectfinancial performanceen_US
dc.subjectstakeholder managementen_US
dc.subjectprimary and secondary stakeholdersen_US
dc.titleWhen Does It (Not) Pay to Be Good? Interplay Between Stakeholder and Competitive Strategiesen_US
dc.typeArticleen_US

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