This paper suggests that due to the changing nature of the firm, viewing shareholders as the sole residual claimants is an increasingly tenuous description of the actual relationships among a corporation’s various stakeholders. Thus, a shareholder wealth perspective is increasingly unsatisfactory for accurately answering the two fundamental questions concerning the theory of the firm: that of economic value creation, and the distribution of this economic value. Examining the corporation from a (team production) property rights perspective of incomplete contracting and implicit contracting provides a foundation for the revitalization of a stakeholder theory of the firm in the strategic management discipline.
|Original language||English (US)|
|Title of host publication||Towards a New Theory of the Firm|
|Subtitle of host publication||Humanizing the Firm and the Management Profession|
|Editors||Joan Enric Ricart Costa, Josep Maria Rosanas Marti|
|Place of Publication||Bilbao, Spain|
|State||Published - 2012|
Mahoney, J. T. (2012). Towards a Stakeholder Theory of Strategic Management. In J. E. Ricart Costa, & J. M. Rosanas Marti (Eds.), Towards a New Theory of the Firm: Humanizing the Firm and the Management Profession (pp. 153-182). BBVA. http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.129.23