Author: Hanqinq Fang, Robert Van de Graaff Randolph, James J. Chrisman
and Tim Barnett
Summary:
Utilizing a combination of stakeholder theory and social identity theory, we explore religiosity in family firms. The concept of bounded stakeholder salience is developed to describe situations where legitimacy is attached to stakeholders based on their possession of characteristics valued by the coalition of family decision-makers rather than their rightful claims to firm resources. We discuss how bounded stakeholder salience creates non-economic co-dependencies between family firms and their stakeholders that are likely to endure over time. Finally, we show that the satisfaction of non-economic goals through relationships with stakeholders with compatible religiosities may have residual effects on firm performance.
