IDEAS home Printed from https://ideas.repec.org/a/kap/jbuset/v130y2015i2p271-289.html
   My bibliography  Save this article

The Vulnerability and Strength Duality in Ethnic Business: A Model of Stakeholder Salience and Social Capital

Author

Listed:
  • Alejandra Marin
  • Ronald Mitchell
  • Jae Lee

Abstract

Managers in ethnic businesses are confronted with ethical dilemmas when taking action based on ethnic ties; and often as a result, they increase the already vulnerable positions of these businesses and their stakeholders. Many of these dilemmas concern the capital that is generated (or the lack of it) through variations in the use of ethnic stakeholder social ties. The purpose of this paper is to suggest a stakeholder-based model of social capital formation, mediated by various forms of ethnic ties, to explore the duality of ethnicity: it can aid and hinder an ethnic business. Drawing upon the social capital/economic development, stakeholder salience, ethnic businesses literatures, and (to some extent) on social identity theory, we develop a cyclical model of relationships among ethnic business stakeholder attributes (ethnic kinship-based power, ethnic-moral legitimacy, and ethnic-critical urgency) and social capital, as mediated by three-way (triadic) Simmelian bonding and bridging ties, which then, in turn, affects the ethnic stakeholder attributes. We argue that the development of bridging yet strong ties through this cyclical process is relevant for the improvement of the positions of ethnic businesses in terms of both economic success and social responsibility. Specifically, we suggest that, given the duality of ethnicity in business, managers can prioritize stakeholder relationships based upon how these stakeholder ties affect social capital. Copyright Springer Science+Business Media Dordrecht 2015

Suggested Citation

  • Alejandra Marin & Ronald Mitchell & Jae Lee, 2015. "The Vulnerability and Strength Duality in Ethnic Business: A Model of Stakeholder Salience and Social Capital," Journal of Business Ethics, Springer, vol. 130(2), pages 271-289, August.
    • Handle: RePEc:kap:jbuset:v:130:y:2015:i:2:p:271-289
    DOI: 10.1007/s10551-014-2207-7
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10551-014-2207-7
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10551-014-2207-7?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Aster Yong, 2008. "Cross-cultural Comparisons of Managerial Perceptions on Profit," Journal of Business Ethics, Springer, vol. 82(4), pages 775-791, November.
    2. Iain Davies & Lynette Ryals, 2010. "The Role of Social Capital in the Success of Fair Trade," Journal of Business Ethics, Springer, vol. 96(2), pages 317-338, October.
    3. John Bingham & W. Gibb Dyer & Isaac Smith & Gregory Adams, 2011. "A Stakeholder Identity Orientation Approach to Corporate Social Performance in Family Firms," Journal of Business Ethics, Springer, vol. 99(4), pages 565-585, April.
    4. Jerry Evensky, 1993. "Retrospectives: Ethics and the Invisible Hand," Journal of Economic Perspectives, American Economic Association, vol. 7(2), pages 197-205, Spring.
    5. James Wallace & Nelarine Cornelius, 2010. "Community Development and Social Regeneration: How the Third Sector Addresses the Needs of BME Communities in Post-Industrial Cities," Journal of Business Ethics, Springer, vol. 97(1), pages 43-54, December.
    6. Antonino Vaccaro & Adele Santana & Donna Wood, 2009. "Introduction to the Special Issue on the Impact of Network Ethics on Business Practices," Journal of Business Ethics, Springer, vol. 90(4), pages 441-446, December.
    7. Michael C. Jensen, 2010. "Value Maximization, Stakeholder Theory, and the Corporate Objective Function," Journal of Applied Corporate Finance, Morgan Stanley, vol. 22(1), pages 32-42, January.
    8. Jan Lepoutre & Aimé Heene, 2006. "Investigating the Impact of Firm Size on Small Business Social Responsibility: A Critical Review," Journal of Business Ethics, Springer, vol. 67(3), pages 257-273, September.
    9. Juliette Koning & Jeff Waistell, 2012. "Identity Talk of Aspirational Ethical Leaders," Journal of Business Ethics, Springer, vol. 107(1), pages 65-77, April.
    10. Elms, Heather & Brammer, Stephen & Harris, Jared D. & Phillips, Robert A., 2010. "New Directions in Strategic Management and Business Ethics," Business Ethics Quarterly, Cambridge University Press, vol. 20(3), pages 401-425, July.
    11. John Hasnas, 2013. "Whither Stakeholder Theory? A Guide for the Perplexed Revisited," Journal of Business Ethics, Springer, vol. 112(1), pages 47-57, January.
    12. Van Buren, Harry J., 2001. "If Fairness is the Problem, Is Consent the Solution? Integrating ISCT and Stakeholder Theory," Business Ethics Quarterly, Cambridge University Press, vol. 11(3), pages 481-499, July.
    13. Fearon, James D. & Laitin, David D., 2003. "Ethnicity, Insurgency, and Civil War," American Political Science Review, Cambridge University Press, vol. 97(1), pages 75-90, February.
    14. Arnold, Denis G. & Audi, Robert & Zwolinski, Matt, 2010. "Recent Work in Ethical Theory and Its Implications for Business Ethics," Business Ethics Quarterly, Cambridge University Press, vol. 20(4), pages 559-581, October.
    15. Chenting Su & Ronald K. Mitchell & M. Joseph Sirgy, 2007. "Enabling Guanxi Management in China: A Hierarchical Stakeholder Model of Effective Guanxi," Journal of Business Ethics, Springer, vol. 71(3), pages 301-319, March.
    16. Ian Davies, 2009. "Latino Immigration and Social Change in the United States: Toward an Ethical Immigration Policy," Journal of Business Ethics, Springer, vol. 88(2), pages 377-391, September.
    17. Marcoux, Alexei M., 2003. "A Fiduciary Argument Against Stakeholder Theory," Business Ethics Quarterly, Cambridge University Press, vol. 13(1), pages 1-24, January.
    18. Benjamin Neville & Bulent Menguc, 2006. "Stakeholder Multiplicity: Toward an Understanding of the Interactions between Stakeholders," Journal of Business Ethics, Springer, vol. 66(4), pages 377-391, July.
    19. Lauren Purnell & R. Freeman, 2012. "Stakeholder Theory, Fact/Value Dichotomy, and the Normative Core: How Wall Street Stops the Ethics Conversation," Journal of Business Ethics, Springer, vol. 109(1), pages 109-116, August.
    20. Benjamin Neville & Simon Bell & Gregory Whitwell, 2011. "Stakeholder Salience Revisited: Refining, Redefining, and Refueling an Underdeveloped Conceptual Tool," Journal of Business Ethics, Springer, vol. 102(3), pages 357-378, September.
    21. Andrew Crane & Trish Ruebottom, 2011. "Stakeholder Theory and Social Identity: Rethinking Stakeholder Identification," Journal of Business Ethics, Springer, vol. 102(1), pages 77-87, March.
    22. Chong Choi & Sae Kim, 2008. "Women and Globalization: Ethical Dimensions of Knowledge Transfer in Global Organizations," Journal of Business Ethics, Springer, vol. 81(1), pages 53-61, August.
    23. Thomas Maak, 2007. "Responsible Leadership, Stakeholder Engagement, and the Emergence of Social Capital," Journal of Business Ethics, Springer, vol. 74(4), pages 329-343, September.
    24. Yahya Wijaya, 2008. "The Prospect of Familism in the Global Era: A Study on the Recent Development of the Ethnic-Chinese Business, with Particular Attention to the Indonesian Context," Journal of Business Ethics, Springer, vol. 79(3), pages 311-317, May.
    25. repec:ucp:bkecon:9780226320625 is not listed on IDEAS
    26. Phillips, Robert, 2003. "Stakeholder Legitimacy," Business Ethics Quarterly, Cambridge University Press, vol. 13(1), pages 25-41, January.
    27. Gordon Walker & Bruce Kogut & Weijian Shan, 1997. "Social Capital, Structural Holes and the Formation of an Industry Network," Organization Science, INFORMS, vol. 8(2), pages 109-125, April.
    28. Elisabet Garriga, 2009. "Cooperation in Stakeholder Networks: Firms’ ‘Tertius Iungens’ Role," Journal of Business Ethics, Springer, vol. 90(4), pages 623-637, December.
    29. Subhabrata Bobby Banerjee, 2001. "Managerial perceptions of corporate environmentalism: interpretations from industry and strategic implications for organizations," Journal of Management Studies, Wiley Blackwell, vol. 38(4), pages 489-513, June.
    30. Freeman, R. Edward, 1994. "The Politics of Stakeholder Theory: Some Future Directions1," Business Ethics Quarterly, Cambridge University Press, vol. 4(4), pages 409-421, October.
    31. Marc Cohen, 2010. "The Narrow Application of Rawls in Business Ethics: A Political Conception of Both Stakeholder Theory and the Morality of Markets," Journal of Business Ethics, Springer, vol. 97(4), pages 563-579, December.
    32. Simon Knox & Colin Gruar, 2007. "The Application of Stakeholder Theory to Relationship Marketing Strategy Development in a Non-profit Organization," Journal of Business Ethics, Springer, vol. 75(2), pages 115-135, October.
    33. Ian Worthington & Monder Ram & Trevor Jones, 2006. "Exploring Corporate Social Responsibility in the U.K. Asian Small Business Community," Journal of Business Ethics, Springer, vol. 67(2), pages 201-217, August.
    34. James Westerman & Rafik Beekun & Yvonne Stedham & Jeanne Yamamura, 2007. "Peers Versus National Culture: An Analysis of Antecedents to Ethical Decision-making," Journal of Business Ethics, Springer, vol. 75(3), pages 239-252, October.
    35. Angeloantonio Russo & Francesco Perrini, 2010. "Investigating Stakeholder Theory and Social Capital: CSR in Large Firms and SMEs," Journal of Business Ethics, Springer, vol. 91(2), pages 207-221, January.
    36. Moser, Caroline O. N., 1998. "The asset vulnerability framework: Reassessing urban poverty reduction strategies," World Development, Elsevier, vol. 26(1), pages 1-19, January.
    37. Phillips, Robert A., 2010. "Ethics and Network Organizations," Business Ethics Quarterly, Cambridge University Press, vol. 20(3), pages 533-543, July.
    38. Woolcock, Michael & Narayan, Deepa, 2000. "Social Capital: Implications for Development Theory, Research, and Policy," The World Bank Research Observer, World Bank, vol. 15(2), pages 225-249, August.
    39. Julia Roloff, 2008. "Learning from Multi-Stakeholder Networks: Issue-Focussed Stakeholder Management," Journal of Business Ethics, Springer, vol. 82(1), pages 233-250, September.
    40. Edward Freeman, R. & Phillips, Robert A., 2002. "Stakeholder Theory: A Libertarian Defense," Business Ethics Quarterly, Cambridge University Press, vol. 12(3), pages 331-349, July.
    41. Adele Santana, 2012. "Three Elements of Stakeholder Legitimacy," Journal of Business Ethics, Springer, vol. 105(2), pages 257-265, January.
    42. Domènec Melé, 2009. "The Practice of Networking: An Ethical Approach," Journal of Business Ethics, Springer, vol. 90(4), pages 487-503, December.
    43. Robert C. Kloosterman, 2010. "Matching opportunities with resources: A framework for analysing (migrant) entrepreneurship from a mixed embeddedness perspective," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 22(1), pages 25-45, January.
    44. Hendry, John, 2001. "Missing the Target: Normative Stakeholder Theory and the Corporate Governance Debate," Business Ethics Quarterly, Cambridge University Press, vol. 11(1), pages 159-176, January.
    45. Jones, Thomas M. & Felps, Will, 2013. "Stakeholder Happiness Enhancement: A Neo-Utilitarian Objective for the Modern Corporation," Business Ethics Quarterly, Cambridge University Press, vol. 23(3), pages 349-379, July.
    46. Saxenian, AnnaLee & Hsu, Jinn-Yuh, 2001. "The Silicon Valley-Hsinchu Connection: Technical Communities and Industrial Upgrading," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 10(4), pages 893-920, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ana Kopren & Hans Westlund, 2021. "Bridging versus Bonding Social Capital in Entrepreneurs’ Networks: The Case of Post-Conflict Western Balkans," Sustainability, MDPI, vol. 13(6), pages 1-18, March.
    2. Benedict E. DeDominicis, 2021. "Multinational Enterprises And Economic Nationalism: A Strategic Analysis Of Culture," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 15(1), pages 19-66.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Silvana Signori & Yves Fassin, 2023. "Family Members’ Salience in Family Business: An Identity-Based Stakeholder Approach," Journal of Business Ethics, Springer, vol. 183(1), pages 191-211, February.
    2. Samantha Miles, 2017. "Stakeholder Theory Classification: A Theoretical and Empirical Evaluation of Definitions," Journal of Business Ethics, Springer, vol. 142(3), pages 437-459, May.
    3. Michael O. Erdiaw-Kwasie & Khorshed Alam & Md. Shahiduzzaman, 2017. "Towards Understanding Stakeholder Salience Transition and Relational Approach to ‘Better’ Corporate Social Responsibility: A Case for a Proposed Model in Practice," Journal of Business Ethics, Springer, vol. 144(1), pages 85-101, August.
    4. Allen Kaufman & Ernie Englander, 2011. "Behavioral Economics, Federalism, and the Triumph of Stakeholder Theory," Journal of Business Ethics, Springer, vol. 102(3), pages 421-438, September.
    5. Edwin Rühli & Sybille Sachs & Ruth Schmitt & Thomas Schneider, 2017. "Innovation in Multistakeholder Settings: The Case of a Wicked Issue in Health Care," Journal of Business Ethics, Springer, vol. 143(2), pages 289-305, June.
    6. Y. Fassin, 2008. "The Stakeholder Model Refined," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 08/529, Ghent University, Faculty of Economics and Business Administration.
    7. Kirsten Martin & Robert Phillips, 2022. "Stakeholder Friction," Journal of Business Ethics, Springer, vol. 177(3), pages 519-531, May.
    8. Shahzad Khurram & Sandra Charreire Petit, 2017. "Investigating the Dynamics of Stakeholder Salience: What Happens When the Institutional Change Process Unfolds?," Journal of Business Ethics, Springer, vol. 143(3), pages 485-515, July.
    9. Benjamin Neville & Simon Bell & Gregory Whitwell, 2011. "Stakeholder Salience Revisited: Refining, Redefining, and Refueling an Underdeveloped Conceptual Tool," Journal of Business Ethics, Springer, vol. 102(3), pages 357-378, September.
    10. Yafet Yosafet Wilben Rissy, 2021. "The stakeholder model: its relevance, concept, and application in the Indonesian banking sector," Journal of Banking Regulation, Palgrave Macmillan, vol. 22(3), pages 219-231, September.
    11. Leon Guillén & Afcha Sergio & Chu Manuel, 2022. "Research on social responsibility of small and medium enterprises: a bibliometric analysis," Management Review Quarterly, Springer, vol. 72(3), pages 857-909, September.
    12. Samuel Mansell, 2013. "Shareholder Theory and Kant’s ‘Duty of Beneficence’," Journal of Business Ethics, Springer, vol. 117(3), pages 583-599, October.
    13. Jennifer Lees-Marshment & Aimee Dinnin Huff & Neil Bendle, 2020. "A Social Commons Ethos in Public Policy-Making," Journal of Business Ethics, Springer, vol. 166(4), pages 761-778, November.
    14. Merja Lähdesmäki & Marjo Siltaoja & Laura J. Spence, 2019. "Stakeholder Salience for Small Businesses: A Social Proximity Perspective," Journal of Business Ethics, Springer, vol. 158(2), pages 373-385, August.
    15. Sergiy D. Dmytriyev & R. Edward Freeman & Jacob Hörisch, 2021. "The Relationship between Stakeholder Theory and Corporate Social Responsibility: Differences, Similarities, and Implications for Social Issues in Management," Journal of Management Studies, Wiley Blackwell, vol. 58(6), pages 1441-1470, September.
    16. Madureira Simaens, Ana, 2015. "Responding to complexity : A systems approach to strategy and interorganizational networks in the context of third sector organizations," Other publications TiSEM 84077bdb-a62a-478f-ba4e-4, Tilburg University, School of Economics and Management.
    17. Giovanni Ferri & Angelo Leogrande, 2015. "Was the Crisis due to a shift from stakeholder to shareholder finance? Surveying the debate," Mo.Fi.R. Working Papers 108, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
    18. Thomas Schneider & Sybille Sachs, 2017. "The Impact of Stakeholder Identities on Value Creation in Issue-Based Stakeholder Networks," Journal of Business Ethics, Springer, vol. 144(1), pages 41-57, August.
    19. Lamin B. Ceesay, 2020. "Exploring the Influence of NGOs in Corporate Sustainability Adoption: Institutional-Legitimacy Perspective," Jindal Journal of Business Research, , vol. 9(2), pages 135-147, December.
    20. Valentinov, Vladislav, 2023. "Stakeholder theory: Toward a classical institutional economics perspective," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 188(1), pages 75-88.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jbuset:v:130:y:2015:i:2:p:271-289. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.