The Impact of Stakeholder Orientation on Innovation: Evidence from a Natural Experiment

• 成果类型: Article
• 署名作者: Flammer, Caroline; Kacperczyk, Aleksandra
• 署名单位: Western University (University of Western Ontario); Massachusetts Institute of Technology (MIT)
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2015.2229
• 发表日期: 2016
• 页码: 1982-2001
• 关键词: innovation; stakeholder view; Long-term orientation; constituency statutes; difference-in-differences

摘要

In this study, we assess the causal impact of stakeholder orientation on innovation. To obtain exogenous variation in stakeholder orientation, we exploit the enactment of state-level constituency statutes, which allow directors to consider stakeholders' interests when making business decisions. Using a difference-in-differences methodology, we find that the enactment of constituency statutes leads to a significant increase in the number of patents and citations per patent. We further argue and provide evidence suggesting that stakeholder orientation sparks innovation by encouraging experimentation and enhancing employees' innovative productivity. Finally, we find that the positive effect of stakeholder orientation on innovation is larger in consumer-focused and less eco-friendly industries.