In this article, we offer an approach of how participative stakeholder innovation can be evaluated in complex multistakeholder settings that address wicked issues. Based on the principle of mutual value creation, we present an evaluation framework that accounts for the social interaction process during which stakeholders integrate their resources and capabilities to develop innovative products and services. To assess this evaluation framework, we collected multiple data from the case study of the Swiss Cardiovascular Network, which represents a multistakeholder setting related (...) to the prevention of cardiovascular disease. Our findings indicate that the evaluation dimensions of the stakeholders’ mindsets, the process and context of the stakeholder interactions, as well as the outcomes are useful concepts to account for a cooperative process of innovation in a multistakeholder setting. We discuss both the theoretical and practical insights of our analysis for participative stakeholder innovation. (shrink)

To mitigate risk, should companies signal a broad range of environmental, social, and governance initiatives or instead focus on only a few ESG issues? Drawing on signaling theory, we propose that a broad array of ESG initiatives generates not only signal consistency but also accelerating signal costs. Our empirical results support the resultant hypothesis of a curvilinear relationship between ESG scope and equity risk. In addition, this U-shaped curve seems to become steeper when firms face multiple media-reported ESG controversies. Overall, (...) our study qualifies the conventional wisdom that firms can reduce equity risk by attending to a wide variety of stakeholders and highlights the moderating impact of the firm’s media environment. (shrink)

The vast majority of indigenous communities are among the world’s poorest and are unlikely to be engaged in a thriving, mutually beneficial partnership with an MNC. While there are increasing studies on CSR initiatives in base of the pyramid communities, few—if any—feature the self-initiated stakeholder transition of an impoverished community. This paper examines the factors that motivated the stakeholder transformation process of an indigenous community, from its position as a non-stakeholder, one lacking in power and legitimacy, to the status of (...) being a primary stakeholder of the firm. We applied a constructivist grounded theory approach to longitudinal data to arrive at the conceptual framework. The findings presented are drawn from an in-depth case study of the Maasai, an indigenous community from East Africa. The findings point to the existence of entrepreneurial alertness that is instrumental in propelling the indigenous community to evolve from one stakeholder category to the next. Our research aims to propose a possible foundation for how communities deep in poverty can coalesce themselves to make their social needs salient to multinational organizations. (shrink)

Stakeholder engagement has grown into a widely used yet often unclear construct in business and society research. The literature lacks a unified understanding of the essentials of stakeholder engagement, and the fragmented use of the stakeholder engagement construct challenges its development and legitimacy. The purpose of this article is to clarify the construct of stakeholder engagement to unfold the full potential of stakeholder engagement research. We conduct a literature review on 90 articles in leading academic journals focusing on stakeholder engagement (...) in the business and society, management and strategy, and environmental management and environmental policy literatures. We present a descriptive analysis of stakeholder engagement research for a 15-year period, and we identify the moral, strategic, and pragmatic components of stakeholder engagement as well as its aims, activities, and impacts. Moreover, we offer an inclusive stakeholder engagement definition and provide a guide to organizing the research. Finally, we complement the current understanding with a largely overlooked dark side of stakeholder engagement. We conclude with future research avenues for stakeholder engagement research. (shrink)

Previous research on sustainable entrepreneurship has mainly aimed to understand the antecedents of entrepreneurs’ sustainability-oriented behavior. Yet the literature lacks a more nuanced understanding of how entrepreneurs implement sustainability strategies when creating a new venture. Drawing on sustainability concepts, we first examine how entrepreneurs balance the economic, environmental, and social dimensions as part of their ventures’ strategic ambitions. We show that sustainable entrepreneurs prioritize the three sustainability dimensions and possibly reprioritize them in response to stakeholder interests. Applying a stakeholder theory (...) perspective, we theorize that how entrepreneurs balance their sustainability dimensions and goals depends on the degree of stakeholder involvement and of external expectations. Our contributions refine the growing sustainable entrepreneurship literature and call attention to the importance of including weightings and time when examining the dimensions of sustainability. (shrink)

This study focuses on how moral aspects of purpose shape collaborative processes. It does so by analyzing the unfolding of 21 relationships between four nonprofits and their funders using a framework based on French pragmatist sociology to help uncover the deeply held, ideological and moral beliefs that underscore assumptions about what the overarching purpose of a collaborative effort is or should be. This study contributes to the literature on single and cross-sectoral collaboration by showing that the way partners handle and (...) reconcile differences about purpose is related to the forms of agreement likely to be achieved. It also suggests that certain forms of agreement are inherently more enduring than others. Taken as a whole, this study provides some plausible explanations as to why so many collaborations fail despite their seeming benefits for all the parties involved. (shrink)