The effect of the stakeholder orientation on social performances

Abstract

The modality in which stakeholder orientation can be successfully leveraged in a scope on corporate social performance has become an important research issue. Based on the legitimacy management model, the study aims to answer two research question (1) what about the efficient scope of the effect of stakeholder orientation on corporate social performance? and(2) whether the stakeholder orientation and institutional condition are complementary? Through combined legitimacy view on corporate social performance, stakeholder and institutional theory, we investigate above two question based on the data of top 100 of advanced corporate social performance in China since 2009 to 2011. Empirical research has found that stakeholder orientation will likely in a higher level in much stronger institutional condition. Stakeholder orientation has an efficient effect scope on corporate social performance by the significantly reversed U-shape relationship between stakeholder orientation effect on social performance. Stakeholder orientation and institutional condition synergy leverage on corporate social performance. Institutional condition is complementary stakeholder orientation effect on corporate social performance.