Stakeholder Theory and the Entrepreneurial Firm
AbstractThis paper offers a typology of a stakeholder theory of the entrepreneurial firm, such that a new lens for entrepreneurial management emerges. We (1) generated a list of purported "theories of the firm" from the literature; (2) applied qualifying criteria; (3) analyzed the list according to two dimensions-stakeholder inclusion and stakeholder equilibration strength-to categorize these theories of the firm into a typology revealing gaps in the theory-of-the-firm literature; and (4) identified research questions for a stakeholder theory of the entrepreneurial firm that raises entrepreneurial management issues.
Amit, R., Glosten, L., & Muller, E. (1993). Challenges to theory development in entrepreneurship research. Journal of Management Studies, 30(5), 815-834.
Barney, J. ( 1991 ). Firm resources and sustained competitive advantage. Journal of Management, 17( 1 ), 99-120.
Barr, J. & Saraceno, F. (2002). A computational theory of the firm. Journal of Economic Behavior and Organization, 49(3), 345-361.
Bartlett, C. & Ghoshal, S. (1993). Beyond the M-form: Toward a managerial theory of the firm.. Strategic Management Journal. 14,23-46.
Boulding, K. (1950). A reconstruction of economics. New York: John Wiley & Sons.
Brenner, S. & Cochran, P. L. (1991). The stakeholder model of the firm: Implications for business and society theory and research. Proceedings of the International Association for Business and Society, 449-467.
Bucar, B. & Hisrich, R. (2001). Ethics of business managers vs. entrepreneurs. Journal of Developmental Entrepreneur ship, 6(1), 59-82.
Canterbery, (1994), Boulding's T, Kaleckian power, and Minsky's fragility hypothesis. Journal of Economic Issues, 28(4), 1227-1248.
Casson, M. (1996). The nature of the firm reconsidered: Information synthesis and entrepreneurial organization. Management International Review, 36(1), 55-94.
Caves, R. E. (1980). Industrial organization, corporate strategy and structure. Journal of Economic Literature, 18(March), 64-92.
Christensen, C. M. (1997). The innovator's dilemma: When new technologies cause great firms to fail. Boston, Mass.: Harvard Business School Press.
Clarkson, M. B. E. (1995). A stakeholder f ramework for analyzing and evaluating corporate social performance. Academy of Management Review, 20(1), 92-117.
Coase, R., H. (1937). The nature of the firm, Economica New Series 4. In G. J. Stigler & K. E. Boulding (Eds.), Readings in Price Theory, pp. 386-405. Homewood, IL: Irwin.
Cyert, R. M. & March, J. G. (1963). The Behavioral Theory of the Firm. Englewood Cliffs, NJ: PrenticeHall.
Dew, N., Velamuri, S. R., & Venkataraman, S. (2004). Dispersed knowledge and an entrepreneurial theory of the firm. Journal of Business Venturing, 19(5), 659-679.
DiMaggio, P. J. & Powell, W. W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48( April), 147-160.
Drucker, P. F. (1973). Management. New York: Harper & Row.
Freeman, R. E. (1984). Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.
Furubotn, E. (2001). The new institutional economics and the theory of the firm. Journal of Economic Behavior & Organization, 45(2), 133.
Grandstrand, O. ( 1998). Towards a theory of the technology-based firm. Research Policy, 27,465-489.
Grossman, S. & Hart, O. (1986). The Costs and Benefits of Ownership: A theory of vertical and lateral integration. The Journal of Political Economy, 94(4), 691-719.
Hannan, M. T. & Freeman, J. (1989). Organizational Ecology. Cambridge, MA.: Harvard University Press.
Hodgson, G.M. (1998). Evolutionary and competence-based theories of the firm. Journal of Economic Studies, 25(1), 25-56.
Jensen, M. & Meckling, W. (1976). Theory of the firm: Managerial behavior, agency costs, and ownership structure. Journal of Financial Economics, 3, 305-360.
Kogut, B & Zander, U. (1992). Knowledge of the firm, combinative capabilities, and the replication of technology. Organization Science 3, 383-397.
Kogut, B. & Zander, U. (1996). What firms do? Coordination, identity, and learning. Organization Science, 7(5), 502-518.
Mitchell, R. K. (2001). Transaction cognition theory and high performance economic results Victoria, BC: International Centre for Venture Expertise.
Mitchell, R. K. (2002a). Entrepreneurship and stakeholder theory: Comment on Ruffin Lecture #2. Business Ethics Quarterly: The Ruffin Series, 3, 175- 196.
Mitchell, R. K. (2002b). Stakeholders of the world unite: Assessing progress on the path toward a stakeholder theory of the firm. In D. Windsor & S. A. Welcomer (Eds.), Proceedings of the Thirteenth Annual Conference, June 27-30, 2002, Victoria, BC, Canada: International Association for Business and Society, pp. 223-225.
Mitchell, R. K., AgIe, B. R., & Wood, D. J. (1997). Toward a theory of stakeholder identification and salience: Defining the principle of who and what really counts. Academv of Management Review, 22(4), 853-886.
Muller, H. & Wareryd, K. (2001). Inside versus outside ownership: A political theory of the firm,. The Rand Journal of Economics, 32(3), 527-541.
Nelson, R. R. & Winter, S. G. (1982). An evolutionary theory of economic change. Cambridge, MA: Belknap Press of Harvard University Press.
Penrose, E. (1959). The theory of the growth of the firm. Chapter V: inherited resources and the direction of expansion, pp. 65-87. New York: Wiley.
Pfeffer, J. & Salancik, G. (1978). The external control of organizations: A resource dependence perspective. New York: Harper & Row.
Porter, M. E. (1980). Competitive Strategy: Techniques for Analyzing Industries and Competitors. New York: Free Press.
Porter, M. E. (1984). Strategic interaction: Some lessons from industry histories for theory and antitrust policy. In R. Lamb ( Ed.), Competitive Strategic Management, pp. 415-443. Don Mills, ON, Canada: Pearson Education Canada.
Sarasvathy, S. D. (2001). Causation and effectuation: Toward a theoretical shift from economic inevitability to entrepreneurial contingency. Academy of Management Review, 26(2), 243-264.
Schumpeter, J. (1934). The Theory of Economic Development. Boston, MA: Harvard University Press.
Slater, S. (1997). Developing a customervalue based theory of the firm. Academy of Marketing Science, 25(2), 162-167.
Smith, A. (1774/1937). The wealth of nations. New York: Modern Library.
Stinchcombe, A. L. (1965). Organizations and social structure. In J. G. March ( Ed.), Handbook of Organisations, pp. 142-193. Chicago: RandMcNaIIy.
Venkataraman, S. (1997). The distinctive domain of entrepreneurship research. In J. Katz (Ed.), Advances in entrepreneurship, firm emergence and growth, 3, 119-138. JAI Press.
Venkataraman, S. (2002). Stakeholder value equilibration and the entrepreneurial process. Business Ethics Quarterly: The Ruffin Series, 3,45-58.
Vesper, K. H. (1996). New Venture Experience. Seattle, WA: Vector Books.
Wernerfelt, B. (1984). A resource-based view of the firm. Strategic Management Journal,5, 171-180.
Williamson, O. E. (1985). The Economic Institutions of Capitalism. New York: The Free Press.
Williamson, O. E. (1991). Strategizing, economizing, and economic organization. Strategic
Management Journal, 12(S), 75-94. www.ronaldmitchell.org/publications