Organizational capabilities and value creation for stakeholders: evidence from publicly traded companies
ISSN: 0025-1747
Article publication date: 24 February 2022
Issue publication date: 8 August 2022
Abstract
Purpose
This paper investigates specific organizational capabilities related to stakeholder relationship capability and the effect of the latter on value creation.
Design/methodology/approach
The authors propose and test whether organizational capabilities related to knowledge, engagement, moral and adaptation are positively related to stakeholder relationship capability. The authors then test the effect of stakeholder relationship capability on the creation of greater value for stakeholders. The study tests the hypotheses with paneled data composed of a sample of 116 publicly traded companies in Brazil for a total of 275 observations taken over three years.
Findings
The findings show that there is a positive and significant relationship between knowledge, engagement, moral and adaptation capabilities and stakeholder relationship capability. Stakeholder relationship capability has been shown to have a positive and significant effect on greater value creation for stakeholders.
Practical implications
Analysis of the processes and practices that serve as the basis for each capability is meaningful for managerial practices, as it offers a more detailed understanding of the routines pertaining to each capability. Practical discussions on operational procedure levels are a meaningful and attainable way for managers to apply stakeholder theory.
Originality/value
The investigation of the specific capabilities enabling value creation between the company and its stakeholders contributes to the discussion of the connections between stakeholder theory and the resource-based view (RBV).
Keywords
Acknowledgements
The authors would like to thank CNPq and CAPES for the financial support.
Citation
Barakat, S.R., Boaventura, J.M.G. and Gabriel, M.L.D.S. (2022), "Organizational capabilities and value creation for stakeholders: evidence from publicly traded companies", Management Decision, Vol. 60 No. 8, pp. 2311-2330. https://doi.org/10.1108/MD-05-2021-0576
Publisher
:Emerald Publishing Limited
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