Stakeholder values are promoted as a guiding principle for executives, but researchers know very little about how the utilization of stakeholder values by executives actually impacts the firms they lead. In this study, we propose that a positive relationship exists between executive stakeholder values and work process change in organizations. We further hypothesize that the congruence of CEO and top management team (TMT) members’ stakeholder values is positively related to this type of organizational change. Results of the analysis confirm that CEO stakeholder values are related to changes in work processes, but not changes to the formal firm structure involving acquisitions or divestitures. Additionally, we find that congruence between CEO and TMT stakeholder values is associated with changes to work processes, and that these changes tend to occur more when CEO and TMT stakeholder values are aligned at higher levels, compared to lower levels of such values.
- organizational change
- stakeholder theory
- values congruence
ASJC Scopus subject areas
- Business and International Management
- Strategy and Management
- Management of Technology and Innovation