Developing a scale for stakeholder orientation

Purpose – Business practitioners are increasingly concerned about stakeholder issues. Although stakeholder orientation (StkO) has important bearings on a company's performance, to date no systematic attempt has been made to develop a valid scale of StkO, or to assess its influence on business performance. The present paper aims to look into ecological validity by attempting to construct and validate the StkO scale developed in China.Design/methodology/approach – Given the literature reviewed, a model is proposed of company performance based on StkOs, which is identified as a one‐dimensional construct consisting of four components. Using a survey design, data were collected from 400 firms in three most important commercial cities of Mainland China with a response rate of 25 percent. Both item analysis and split‐half method were used to purify the measurement scale and to assess its stability. An exploratory factory was used to assess the dimensionality. Its result was subject to a confirmatory factory anal...

[1]  Pennie Frow,et al.  Relationship Value Management: Exploring the Integration of Employee, Customer and Shareholder Value and Enterprise Performance Models , 2001 .

[2]  Perry Sadorsky,et al.  The Relationship Between Environmental Commitment and Managerial Perceptions of Stakeholder Importance , 1999 .

[3]  Bernard J. Jaworski,et al.  Market orientation: Antecedents and consequences , 1993 .

[4]  Daniel J. Koys.  The Effects of Employee Satisfaction, Organizational Citizenship Behavior, and Turnover on Organizational Effectiveness , 2001 .

[5]  T. Jones,et al.  An Agent Morality View of Business Policy , 1995 .

[6]  Steven N. Brenner,et al.  The Stakeholder Theory of the Firm: Implications for Business and Society Theory and Research , 1991 .

[7]  J. Farley,et al.  Corporate Culture, Customer Orientation, and Innovativeness in Japanese Firms: A Quadrad Analysis , 1993 .

[8]  Gilbert A. Churchill.  A Paradigm for Developing Better Measures of Marketing Constructs , 1979 .

[9]  Kenneth E. Aupperle,et al.  An empirical examination of the relationship between corporate so#al responsibility and profitabilit , 1985 .

[10]  Christian Homburg,et al.  A Multiple-Layer Model of Market-Oriented Organizational Culture: Measurement Issues and Performance Outcomes , 2000 .

[11]  J. Hair.  Multivariate data analysis , 1972 .

[12]  R. Frank.  Passions Within Reason: The Strategic Role of the Emotions , 1990 .

[13]  J. Kotter,et al.  Corporate Culture and Performance , 1992 .

[14]  Gregory G. Dess,et al.  Clarifying the Entrepreneurial Orientation Construct and Linking It To Performance , 1996 .

[15]  J. Fahy,et al.  Market Orientation in the Transition Economies of Central Europe:: Tests of the Narver and Slater Market Orientation Scales , 2000 .

[16]  R. Edward Freeman,et al.  Stakeholder Theory and "The Corporate Objective Revisited" , 2004, Organ. Sci..

[17]  J. Samuels,et al.  Management of company finance , 1971 .

[18]  Tony Cox,et al.  Marketing Capabilities and Firm Performance: A Hierarchical Model , 1999 .

[19]  Gordon R. Foxall,et al.  Consumer and nonconsumer stakeholder orientation in U.K. companies , 1996 .

[20]  Yvon Pesqueux,et al.  Stakeholder theory in perspective , 2005 .

[21]  Jay J. Janney,et al.  An Empirical Investigation of the Relationship Between Change in Corporate Social Performance and Financial Performance: A Stakeholder Theory Perspective , 2001 .

[22]  R. Freeman.  Strategic Management: A Stakeholder Approach , 2010 .

[23]  Sonny Nwankwo,et al.  Developing a customer orientation , 1995 .

[24]  F. Webster.  The Changing Role of Marketing in the Corporation , 1992 .

[25]  Raymond P. M. Chow,et al.  Relationship marketing orientation: scale development and cross-cultural validation , 2005 .

[26]  R. Freeman.  The Politics of Stakeholder Theory: Some Future Directions , 1994, Business Ethics Quarterly.

[27]  John C. Narver,et al.  The Effect of a Market Orientation on Business Profitability , 1990 .

[28]  Justin Tan,et al.  Environment-Strategy Relationship and its Performance Implications: An Empirical Study of Chinese Electronics Industry , 1994 .

[29]  Bernard J. Jaworski,et al.  Market orientation: The construct, research propositions, and managerial implications. , 1990 .

[30]  Ronald K. Mitchell,et al.  Toward a Theory of Stakeholder Identification and Salience: Defining the Principle of who and What Really Counts , 1997 .

[31]  T. Jones.  INSTRUMENTAL STAKEHOLDER THEORY: A SYNTHESIS OF ETHICS AND ECONOMICS , 1995 .

[32]  S. Levy,et al.  Broadening the concept of marketing. , 1969, Journal of marketing.

[33]  Gordon R. Foxall,et al.  External moderation of associations among stakeholder orientations and company performance , 1998 .

[34]  Reginald A. Litz.  A resource-based-view of the socially responsible firm: Stakeholder interdependence, ethical awareness, and issue responsiveness as strategic assets , 1996 .

[35]  Sybille Sachs,et al.  Changing managers’ values towards a broader stakeholder orientation , 2005 .

[36]  Fred L. Collopy,et al.  Competitor Orientation: Effects of Objectives and Information on Managerial Decisions and Profitability , 1996 .

[37]  Robert F. DeVellis,et al.  Scale Development: Theory and Applications. , 1992 .

[38]  B. Gerhart,et al.  The Impact of Human Resource Management on Organizational Performance: Progress and Prospects , 1996 .

[39]  Raymond P. M. Chow,et al.  Market orientation and business performance , 2003 .

[40]  Jin K. Han,et al.  Market Orientation and Organizational Performance: Is Innovation a Missing Link? , 1998 .

[41]  J. McGuire,et al.  Corporate Social Responsibility and Firm Financial Performance , 1988 .

[42]  I. Jawahar,et al.  Toward a Descriptive Stakeholder Theory: an Organizational Life Cycle Approach , 2001 .

[43]  J. Barney.  Firm Resources and Sustained Competitive Advantage , 1991 .

[44]  George S. Day,et al.  Assessing Advantage: A Framework for Diagnosing Competitive Superiority , 1988 .

[45]  J. Barney,et al.  Trustworthiness as a Source of Competitive Advantage , 1994 .

[46]  Gordon E. Greenley,et al.  Strategic planning differences among different multiple stakeholder orientation profiles , 2004 .

[47]  P. Bentler,et al.  Comparative fit indexes in structural models. , 1990, Psychological bulletin.

[48]  L. Preston,et al.  The Stakeholder Theory of the Corporation: Concepts, Evidence, and Implications , 1995 .

[49]  Robert N. Stern,et al.  The External Control of Organizations: A Resource Dependence Perspective. , 1979 .

[50]  J. Dawes.  Market Orientation and Company Profitability: Further Evidence Incorporating Longitudinal Data , 2000 .

[51]  Gordon R. Foxall,et al.  Multiple Stakeholder Orientation in UK Companies and the Implications for Company Performance , 1997 .

[52]  Shawn L. Berman,et al.  Does Stakeholder Orientation Matter? The Relationship Between Stakeholder Management Models and Firm Financial Performance , 1999 .

[53]  A. Neely,et al.  The performance prism in practice , 2001 .