Performance Effects of Stakeholder Interaction in Emerging Economies: Evidence from Brazil
Journal Title: BAR: Brazilian Administration Review - Year 2011, Vol 8, Issue 3
Abstract
Firm survival in emerging economies is often related to having access to valuable resources that are in stakeholders’ hands. However, the literature on strategy in emerging economies provides scant information on the efficiency of acquiring stakeholder resources and its effect on firm performance. We investigated the stakeholder interaction effects on performance of domestic firms competing in an emerging market (Wright, Filatotchev, Hoskisson, & Peng, 2005) from a contractual perspective (Williamson, 1985). We argue that interacting stakeholders in a contractual set yield synergistic governance structures that allow firms more efficient access to external resources. Using a sample of 267 firms in Brazil (secondary data), we explored different patterns in stakeholder contracting with community, government, top management, and employees. A three-stage analysis process was devised: cluster analysis, general linear model estimation and verification tests. Results suggest that stakeholder interaction has a positive impact on firm performance. The conjoint effect of government and community contracts was found to yield superior firm performance as they provide a basic structure for contracting with other interacting stakeholders.
Authors and Affiliations
Bandeira-de-Mello, Rodrigo; Marcon, Rosilene; Alberton, Anete
Keywords
Related Articles
- EP ID EP40498
- DOI -
- Views 271
- Downloads 0
“Why Caipirinha?”- The Online via Chat Laddering Technique CAN Answer
As customers are becoming increasingly connected to the internet, this means that they are available for online interviews, thus opening up a space for investigating research methods, especially qualitative research, in...
Organizational Commitment and Job Satisfaction: What Are the Potential Relationships?
This study compared two different structural models regarding the direct or mediation role satisfaction has in the prediction of commitment bond, in the context of a public and traditional Brazilian organization, the Mi...
The Learning Process in Interorganizational Relationships
This study was inspired by the proposition developed by Karthik (2002) and applied to a context of horizontal interorganizational relations. Our main objective was to understand how the learning process between organiz...
Credit Rating Change and Capital Structure in Latin America
This study analyzes the impact of imminent reclassification of credit rating on the decision-making regarding capital structure of non-financial corporations listed in Latin America. Despite the importance attributed by...
Convents without nuns: Historical analysis of women workers in a textile factory
This paper aims to contribute to the historical unveiling of a certain set of dispositives and discourses that befell Brazilian textile factory working women who came to reside in the convents inaugurated in the last dec...