Why Do Firms Strive for Non-Pecuniary Performance?

Babson College Center for Entrepreneurship Research No. 2008-07

Family Enterprise Research Conference (FERC)

Academy of Management Conference

33 Pages Posted: 31 Oct 2008

See all articles by Thomas Zellweger

Thomas Zellweger

University of St. Gallen - Center for Family Business; Babson College - Arthur M. Blank Center for Entrepreneurship

Robert S. Nason

Babson College - Arthur M. Blank Center for Entrepreneurship

Mattias Nordqvist

Jonkoping University - Jonkoping International Business School (JIBS); Babson College - Arthur M. Blank Center for Entrepreneurship

Date Written: September, 17 2008

Abstract

The present paper develops an explanation of non-pecuniary performance of firms, which extends current ethical and financial rational and encompasses multiple levels of stakeholder analysis. Drawing from social identity theory and the literature on organizational reputation, we show that identity overlaps between managers and organizations create an incentive to protect and build corporate reputation, thereby motivating managers to produce non-pecuniary performance outcomes that satisfy reputation forming stakeholders. We suggest that the link between identity overlaps and the incentives to build and protect corporate reputation is moderated by the type of the manager's commitment and provide empirically testable propositions for our claims. We use the family business, a particularly high identity overlap organization, as a context to explore our arguments.

Keywords: family firms, stakeholder theory, non-pecuniary performance, social identity theory, organizational reputation

JEL Classification: M13

Suggested Citation

Zellweger, Thomas and Nason, Robert S. and Nordqvist, Mattias, Why Do Firms Strive for Non-Pecuniary Performance? (September, 17 2008). Babson College Center for Entrepreneurship Research No. 2008-07, Family Enterprise Research Conference (FERC), Academy of Management Conference, Available at SSRN: https://ssrn.com/abstract=1269509 or http://dx.doi.org/10.2139/ssrn.1269509

Thomas Zellweger

University of St. Gallen - Center for Family Business ( email )

Varnbuelstr. 14
Saint Gallen, St. Gallen CH-9000
Switzerland
+41 71 224 71 42 (Phone)
+41 71 224 71 01 (Fax)

HOME PAGE: http://www.kmu.unisg.ch/org/kmu/web.nsf/wwwPubPersonGer/90349757A26ABCBFC125716B0046D6EE

Babson College - Arthur M. Blank Center for Entrepreneurship

231 Forest Street
Babson Park, MA 02457-0310
United States

Robert S. Nason (Contact Author)

Babson College - Arthur M. Blank Center for Entrepreneurship ( email )

231 Forest Street
Babson Park, MA 02457-0310
United States

Mattias Nordqvist

Jonkoping University - Jonkoping International Business School (JIBS) ( email )

Jönköping, 55111
Sweden

Babson College - Arthur M. Blank Center for Entrepreneurship

231 Forest Street
Babson Park, MA 02457-0310
United States

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