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Cited by 20Corporate Social Responsibility ReportingAccounting and Organizational ManagementOrganizational Strategy and Culture

Balanced versus focused responsiveness to core constituencies and organizational effectiveness

Koll, Oliver, Woodside, Arch G., Mühlbacher, Hans·2005·European Journal of Marketing
DOI 10.1108/03090560510610789
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Abstract

Purpose: To test how responsiveness to key organizational stakeholders (owners, customers, employees) is related to organizational effectiveness (OE). Focused versus balanced strategies of responsiveness are compared. Design/methodology/approach: Employs Boolean algebra to study performance of 69 companies in three industries over a ten‐year period. Responsiveness to key stakeholders and performance are measured using publicly available data provided by these organizations (Compustat by Standard & Poor's). Findings: Provides evidence that balanced responsiveness to multiple constituencies is more likely to lead to high OE than focused responsiveness to a single one. Trade‐offs in responsiveness to key stakeholders are found supporting the idea that serving multiple interests is challenging. Most results are not industry‐specific – the usefulness of a balanced strategy of responsiveness may be generalized. Research limitations/implications: Responsiveness embraces organizational behaviors not covered by accounting information. Development of more comprehensive responsiveness measures may be a fruitful avenue for further research. Analyses are limited to a subset of key stakeholders and three industries. Practical implications: Provides evidence that organizations avoiding extreme unresponsiveness to any of its key stakeholders are more effective. Aiming for above‐average responsiveness to any constituency only pays off if no other constituency simultaneously enjoys below‐average responsiveness. Originality/value: This article develops a comprehensive methodological framework to assess strategies comparing balanced versus focused responsiveness to multiple organizational constituencies. Empirical results should be of relevance to strategy practitioners and scholars alike.

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Crossref · 10.1108/03090560510610789

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  • Some studies have empirically shown that organizations paying attention to multiple stakeholders perform better.

    “some studies have empirically shown that organizations paying attention to multiple stakeholders perform better (e.g., Homburg et al. 2013;Koll et al. 2005;Luo and Bhattacharya 2009;Sisodia et al. 2007).”

    From Stakeholder marketing: theoretical foundations and required capabilities (2015) · cites this paper as Koll et al. 2005

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Authors
Koll, O., Woodside, A. G., & Mühlbacher, H.
Affiliations
  • Universität Innsbruck (AT)
  • Boston College (US)
ORCID
Venue
European Journal of Marketing
Publisher
Emerald
Published
2005-09-01
Volume
39
Issue
9/10
Pages
1166-1183
ISSN
0309-0566 (ISSN-L)
DOI
10.1108/03090560510610789
OpenAlex
W2086984406
Cited by
20
References
59
Citations by year
2023: 1 · 2022: 4 · 2018: 1 · 2015: 4 · 2014: 4 · 2013: 1 · 2012: 1
FWCI
1.21
Type
journal article
Language
en
Open access
closed
Licence
www.emerald.com/insight/site-policies (tdm)
Locations
European Journal of Marketing (publishedVersion)
Topics
  • Social Sciences › Business, Management and Accounting › Strategy and Management › Corporate Social Responsibility Reporting
  • Social Sciences › Business, Management and Accounting › Management Information Systems › Accounting and Organizational Management
  • Social Sciences › Business, Management and Accounting › Organizational Behavior and Human Resource Management › Organizational Strategy and Culture
Keywords
stakeholder responsiveness, organizational effectiveness, organizational stakeholders, owners, customers, workers, Boolean algebra, firm performance, business strategy

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