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Enterprise logic: explaining corporate attention to stakeholders from the ‘inside‐out’

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  • Donal Crilly
  • Pamela Sloan

Abstract

Why are some firms more effective than others at addressing stakeholder concerns? Conventional stakeholder theories focus on variables in the external environment and cannot adequately explain variance across firms operating in the same context. Our matched‐pair study of eight global corporations goes inside the firm and investigates the role of managerial cognition on corporate attention to stakeholders. We find that top management's conceptualization of the firm's relationship with society—which we name enterprise logic—prompts distinct foci of attention and potentially constrains how well a single firm can simultaneously attend to multiple stakeholders. These findings highlight the value of an ‘inside‐out’ perspective, centered on managerial cognition, in explaining why some firms address stakeholder concerns more effectively than their peers. Copyright © 2012 John Wiley & Sons, Ltd.

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  • Donal Crilly & Pamela Sloan, 2012. "Enterprise logic: explaining corporate attention to stakeholders from the ‘inside‐out’," Strategic Management Journal, Wiley Blackwell, vol. 33(10), pages 1174-1193, October.
    • Handle: RePEc:bla:stratm:v:33:y:2012:i:10:p:1174-1193
    DOI: 10.1002/smj.1964
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    Cited by:

    1. Anne-Laure P. Winkler & Jill A. Brown & David L. Finegold, 2019. "Employees as Conduits for Effective Stakeholder Engagement: An Example from B Corporations," Journal of Business Ethics, Springer, vol. 160(4), pages 913-936, December.
    2. Xiaotao (Kelvin) Liu & Xiaoxia Liu & Colin D. Reid, 2019. "Stakeholder Orientations and Cost Management," Contemporary Accounting Research, John Wiley & Sons, vol. 36(1), pages 486-512, March.
    3. Stefan Gröschl & Patricia Gabaldón & Tobias Hahn, 2019. "The Co-evolution of Leaders’ Cognitive Complexity and Corporate Sustainability: The Case of the CEO of Puma," Journal of Business Ethics, Springer, vol. 155(3), pages 741-762, March.
    4. Jordi A. Surroca & Ruth V. Aguilera & Kurt Desender & Josep A. Tribó, 2020. "Is managerial entrenchment always bad and corporate social responsibility always good? A cross‐national examination of their combined influence on shareholder value," Strategic Management Journal, Wiley Blackwell, vol. 41(5), pages 891-920, May.
    5. Violetta Bacon-Gerasymenko & Jonathan D. Arthurs & Sam Y. Cho, 2020. "How and When Investment Horizons Determine Venture Capital Firms’ Attention Breadth to Portfolio Companies," Entrepreneurship Theory and Practice, , vol. 44(3), pages 475-503, May.
    6. Joan Enric Ricart & Yuliya Snihur & Carlos Carrasco-Farré & Pascual Berrone, 2020. "Grassroots Resistance to Digital Platforms and Relational Business Model Design to Overcome It: A Conceptual Framework," Strategy Science, INFORMS, vol. 5(3), pages 271-291, September.
    7. Juelin Yin & Anusorn Singhapakdi & Yunzhou Du, 2016. "Causes and moderators of corporate social responsibility in China: The influence of personal values and institutional logics," Asian Business & Management, Palgrave Macmillan, vol. 15(3), pages 226-254, July.
    8. Hannah Charlotte Joos, 2019. "Influences on managerial perceptions of stakeholder salience: two decades of research in review," Management Review Quarterly, Springer, vol. 69(1), pages 3-37, February.
    9. Vracheva, Veselina & Judge, William Q. & Madden, Timothy, 2016. "Enterprise strategy concept, measurement, and validation: Integrating stakeholder engagement into the firm's strategic architecture," European Management Journal, Elsevier, vol. 34(4), pages 374-385.
    10. Giorgos Papagiannakis & Irini Voudouris & Spyros Lioukas & George Kassinis, 2019. "Environmental management systems and environmental product innovation: The role of stakeholder engagement," Business Strategy and the Environment, Wiley Blackwell, vol. 28(6), pages 939-950, September.
    11. Won-Yong Oh & Young Kyun Chang & Gyeonghwan Lee & Jeongil Seo, 2018. "Intragroup Transactions, Corporate Governance, and Corporate Philanthropy in Korean Business Groups," Journal of Business Ethics, Springer, vol. 153(4), pages 1031-1049, December.
    12. Andrea Cardoni & Evgeniia Kiseleva & Paolo Taticchi, 2020. "In Search of Sustainable Value: A Structured Literature Review," Sustainability, MDPI, vol. 12(2), pages 1-18, January.
    13. Elg, Ulf & Welinder, Axel, 2022. "Sustainabilty and retail marketing: Corporate, product and store perspectives," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    14. Emanuele L. M. Bettinazzi & Maurizio Zollo, 2022. "Stakeholder Orientation and Experiential Learning: Evidence from Corporate Acquisitions," Journal of Management Studies, Wiley Blackwell, vol. 59(6), pages 1422-1459, September.
    15. Burbano, Vanessa C. & Ostler, James, 2021. "Differences in consumer-benefiting misconduct by nonprofit, for-profit, and public organizations," Organizational Behavior and Human Decision Processes, Elsevier, vol. 166(C), pages 117-136.
    16. Yoo Jung Ha, 2021. "Foreign multinational enterprises and eco-innovation in local firms: the effect of imitation," Asian Business & Management, Palgrave Macmillan, vol. 20(4), pages 488-517, September.
    17. Conti, Raffaele & Novelli, Elena, 2022. "Not all technologies are created equal for stakeholders: Constituency statutes, firm stakeholder orientation and investments in technology generality," Research Policy, Elsevier, vol. 51(3).
    18. Jennifer Oetzel & Chang Hoon Oh, 2021. "A storm is brewing: Antecedents of disaster preparation in risk prone locations," Strategic Management Journal, Wiley Blackwell, vol. 42(8), pages 1545-1570, August.
    19. Agnieszka Zakrzewska-Bielawska, 2019. "Recognition of relational strategy content: insight from the managers’ view," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 9(2), pages 193-211, June.

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