Corporate Purpose and Financial Performance

Published Online:https://doi.org/10.1287/orsc.2018.1230

References

  • Agarwal R, Ohyama A (2013) Industry or academia, basic or applied? Career choices and earnings trajectories of scientists. Management Sci. 59(4):950–970.LinkGoogle Scholar
  • Agarwal R, Anand J, Bercovitz J, Croson R (2012) Spillovers across organizational architectures: The role of prior resource allocation and communication in post‐acquisition coordination outcomes. Strategic Management J. 33(6):710–733.CrossrefGoogle Scholar
  • Argyres N (2011) Using organizational economics to study organizational capability development and strategy. Organ. Sci. 22(5):1138–1143.LinkGoogle Scholar
  • Baker GP, Gibbons R, Murphy KJ (1994) Subjective performance measures in optimal incentive contracts. Quart. J. Econom. 109(4):1125–1156.CrossrefGoogle Scholar
  • Bakke D (2010) Joy at Work: A Revolutionary Approach to Fun on the Job (PVG, Seattle).Google Scholar
  • Bartlett CA, Ghoshal S (1994) Changing the role of top management: Beyond strategy to purpose. Harvard Bus. Rev. 72(6):79–88.Google Scholar
  • Benjamini Y, Krieger AM, Yekutieli D (2006) Adaptive linear step-up procedures that control the false discovery rate. Biometrika 93(3):491–507.CrossrefGoogle Scholar
  • Blader S, Gartenberg C, Prat A (2018) The contingent effect of management practices. Working paper, University of Pennsylvania, Philadelphia.Google Scholar
  • Blader S, Gartenberg C, Henderson R, Prat A (2015) The real effects of relational contracts. Amer. Econom. Rev. Papers Proc. 105(5):452–456.CrossrefGoogle Scholar
  • Blau PM, Scott WR (2003) Formal Organizations: A Comparative Approach (Stanford University Press, San Francisco).Google Scholar
  • Bloom N, van Reenen J (2007) Measuring and explaining management practices across firms and countries. Quart. J. Econom. 122(4):1351–1408.CrossrefGoogle Scholar
  • Bower JL (1970) Managing the Resource Allocation Process: A Study of Corporate Planning and Investment (Harvard Business School, Division of Research, Boston).Google Scholar
  • Brammer S, Millington A (2008) Does it pay to be different? An analysis of the relationship between corporate social and financial performance. Strategic Management J. 29(12):1325–1343.CrossrefGoogle Scholar
  • Brochet F, Loumioti M, Serafeim G (2015) Speaking of the short-term: Disclosure horizon and managerial myopia. Rev. Accounting Stud. 20(3):1122–1163.CrossrefGoogle Scholar
  • Bunderson JS, Thompson JA (2009) The call of the wild: Zookeepers, callings, and the double-edged sword of deeply meaningful work. Admin. Sci. Quart. 54(1):32–57.CrossrefGoogle Scholar
  • Burbano VC (2016) Social responsibility messages and worker wage requirements: Field experimental evidence from online labor marketplaces. Organ. Sci. 27(4):1010–1028.LinkGoogle Scholar
  • Burgelman RA (1983) A process model of internal corporate venturing in the diversified major firm. Admin. Sci. Quart. 28(2):223–244.CrossrefGoogle Scholar
  • Bushee BJ (1998) The influence of institutional investors on myopic R&D investment behavior. Accounting Rev. 73(3):305–333.CrossrefGoogle Scholar
  • Carhart MM (1997) On persistence in mutual fund performance. J. Finance 52(1):57–82.CrossrefGoogle Scholar
  • Carton AM (2017) “I’m not mopping the floors, I’m putting a man on the moon”: How NASA leaders enhanced the meaningfulness of work by changing the meaning of work. Admin. Sci. Quart. 63(2):323–369.CrossrefGoogle Scholar
  • Carton AM, Murphy C, Clark JR (2014) A (blurry) vision of the future: How leader rhetoric about ultimate goals influences performance. Acad. Management J. 57(6):1544–1570.CrossrefGoogle Scholar
  • Cassar L, Meier S (2018) “Nonmonetary incentives and the implications of work as a source of meaning”. J. Econom. Perspect. 32(3):215–238.CrossrefGoogle Scholar
  • Cheng IH, Hong H, Shue K (2013) Do managers do good with other people's money? NBER Working Paper 19432, National Bureau of Economic Research, Cambridge, MA.Google Scholar
  • Connelly BL, Tihanyi LS, Certo T, Hitt MA (2010) Marching to the beat of different drummers: The influence of institutional owners on competitive actions. Acad. Management J. 53(4):723–742.CrossrefGoogle Scholar
  • Costello AB, Osborne JW (2009) Exploratory factor analysis: Four recommendations for getting the most from your analysis. Pan-Pacific Management Rev. 12(2):131–146.Google Scholar
  • Du S, Bhattacharya CB, Sen S (2007a) Convergence of interests-cultivating consumer trust through corporate social initiatives. Fitzsimons G, Morwitz V, eds. Advances in Consumer Research, vol. 34 (Association for Consumer Research, Duluth, MN), 687.Google Scholar
  • Du S, Bhattacharya CB, Sen S (2007b) Reaping relational rewards from corporate social responsibility: The role of competitive positioning. Internat. J. Res. Marketing 24(3):224–241.CrossrefGoogle Scholar
  • Edmans A (2011) Does the stock market fully value intangibles? Employee satisfaction and equity prices. J. Financial Econom. 101(3):621–640.CrossrefGoogle Scholar
  • Ernst & Young, Oxford University Saϊd Business School (2016) The State of the Debate on Purpose in Business (EY Beacon Institute, Manchester, UK).Google Scholar
  • Fama EF, French KR (1993) Common risk factors in the returns on stocks and bonds. J. Financial Econom. 33(1):3–56.CrossrefGoogle Scholar
  • Felin T, Foss NJ, Ployhart RE (2015) The microfoundations movement in strategy and organization theory. Acad. Management Ann. 9(1):575–632.CrossrefGoogle Scholar
  • Floyd SW, Wooldridge W (1997) Middle management’s strategic influence and organizational performance. J. Management Stud. 34(3):465–485.CrossrefGoogle Scholar
  • Fried Y, Ferris GR (1987) The validity of the job characteristics model: A review and meta‐analysis. Personnel Psych. 40(2):287–322.CrossrefGoogle Scholar
  • Friedman M (1961) The lag in effect of monetary policy. J. Political Econom. 69(5):447–466.CrossrefGoogle Scholar
  • Garrett J, Hoitash R, Prawitt DF (2014) Trust and financial reporting quality. J. Accounting Res. 52(5):1087–1125.CrossrefGoogle Scholar
  • Gibbons R, Henderson R (2012) Relational contracts and organizational capabilities. Organ. Sci. 23(5):1350–1364.LinkGoogle Scholar
  • Gneezy U, Meier S, Rey-Biel P (2011) When and why incentives (don’t) work to modify behavior. J. Econom. Perspect. 25(4):191–209.CrossrefGoogle Scholar
  • Graham JR, Harvey CR, Popadak J, Rajgopal S (2017) Corporate culture: Evidence from the field. Working Paper w23255, National Bureau of Economic Research, Cambridge, MA.Google Scholar
  • Grant AM (2008) The significance of task significance: Job performance effects, relational mechanisms, and boundary conditions. J. Appl. Psych. 93(1):108–124.CrossrefGoogle Scholar
  • Grant AM, Hofmann DA (2011) It’s not all about me: Motivating hand hygiene among health care professionals by focusing on patients. Psych. Sci. 22(12):1494–1499.CrossrefGoogle Scholar
  • Grant AM, Campbell EM, Chen G, Cottone K, Lapedis D, Lee K (2007) Impact and the art of motivation maintenance: The effects of contact with beneficiaries on persistence behavior. Organ. Behav. Human Decision Processes 103(1):53–67.CrossrefGoogle Scholar
  • Guiso L, Sapienza P, Zingales L (2015) The value of corporate culture. J. Financial Econom. 117(1):60–76.CrossrefGoogle Scholar
  • Hackman JR, Oldham GR (1976) Motivation through the design of work: Test of a theory. Organ. Behav. Human Performance 16(2):250–279.CrossrefGoogle Scholar
  • Hainmueller J, Hiscox MJ (2105) The Socially Conscious Consumer? Field Experimental Tests of Consumer Support for Fair Labor Standards. Working Paper 2012-15, Massachusetts Institute of Technology, Cambridge.Google Scholar
  • Harvard Business Review (2015) The business case for purpose. Report, Harvard Business Review Analytic Services, Boston.Google Scholar
  • Helfat CE, Peteraf MA (2015) Managerial cognitive capabilities and the microfoundations of dynamic capabilities. Strategic Management J. 36(6):831–850.CrossrefGoogle Scholar
  • Henderson R, Van den Steen E (2015) Why do firms have “purpose”? The firm’s role as a carrier of identity and reputation. Amer. Econom. Rev. 105(5):326–330.CrossrefGoogle Scholar
  • Hollensbe E, Wookey C, Hickey L, George G, Nichols CV (2014) Organizations with purpose. Acad. Management J. 57(5):1227–1234.CrossrefGoogle Scholar
  • House RJ (1997) Path–goal theory of leadership: Lessons, legacy, and a reformulated theory. Leadership Quart. 7(3):323–352.CrossrefGoogle Scholar
  • Huy QN (2001) In praise of middle managers. Harvard Bus. Rev. 79(8):72–79.Google Scholar
  • Jensen MC (2010) Value maximization, stakeholder theory, and the corporate objective function. J. Appl. Corporate Finance 22(1):32–42.CrossrefGoogle Scholar
  • Jensen MC, Meckling WH (1976) Theory of the firm: Managerial behavior, agency costs and ownership structure. J. Financial Econom. 3(4):305–360.CrossrefGoogle Scholar
  • Kaiser HF (1958) The varimax criterion for analytic rotation in factor analysis. Psychometrika 23(3):187–200.CrossrefGoogle Scholar
  • Kanter RM (1982) The middle manager as innovator. Harvard Bus. Rev. 60(4):95–105.Google Scholar
  • Kaplan S, Henderson R (2005) Inertia and incentives: Bridging organizational economics and organizational theory. Organ. Sci. 16(5):509–521.LinkGoogle Scholar
  • Katz D, Kahn RL (1978) The social psychology of organizations. Jae-On K, and Mueller CW, eds. Factor Analysis: Statistical Methods and Practical Issues, vol. 14 (Wiley, Sage, New York).Google Scholar
  • Kirkpatrick SA, Locke EA (1996) Direct and indirect effects of three core charismatic leadership components on performance and attitudes. J. Appl. Psych. 81(1):36–51.CrossrefGoogle Scholar
  • Levitt A (2000) Renewing the covenant with investors. Speech, May 10. U.S. Securities and Exchange Commission, New York University’s Center for Law and Business, New York.Google Scholar
  • Liden RC, Wayne SJ, Sparrowe RT (2000) An examination of the mediating role of psychological empowerment on the relations between the job, interpersonal relationships, and work outcomes. J. Appl. Psych. 85(3):407–416.CrossrefGoogle Scholar
  • Michaelson C, Pratt MC, Grant AM, Dunn CP (2014) Meaningful work: Connecting business ethics and organization studies. J. Bus. Ethics 121(1):77–90.CrossrefGoogle Scholar
  • Mollick E (2012) People and process, suits and innovators: The role of individuals in firm performance. Strategic Management J. 33(9):1001–1015.CrossrefGoogle Scholar
  • Murphy K (1999) Executive compensation. Ashenfelter OC, Card D, eds. Handbook of Labor Economics, vol. 3B (Elsevier, Amsterdam), 2485–2563.CrossrefGoogle Scholar
  • Nickerson JA, Zenger TR (2008) Envy, comparison costs, and the economic theory of the firm. Strategic Management J. 29(13):1429–1449.CrossrefGoogle Scholar
  • Piccolo RF, Colquitt JA (2006) Transformational leadership and job behaviors: The mediating role of core job characteristics. Acad. Management J. 49(2):327–340.CrossrefGoogle Scholar
  • Podolny JM, Khurana R, Hill-Popper M (2004) Revisiting the meaning of leadership. Res. Organ. Behav. 26:1–36.CrossrefGoogle Scholar
  • Pratt MG, Ashforth BE (2003) Fostering meaningfulness in working and at work. Cameron KS, Dutton JE, Quinn RE, eds. Positive Organizational Scholarship: Foundations of a New Discipline (Berret-Kohler, San Francisco), 309–327.Google Scholar
  • Rouleau L, Balogun J (2011) Middle managers, strategic sensemaking, and discursive competence. J. Management Stud. 48(5):953–983.CrossrefGoogle Scholar
  • Stern S (2004) Do scientists pay to be scientists? Management Sci. 50(6):835–853.LinkGoogle Scholar
  • Thakor AV, Quinn RE (2013) The economics of higher purpose. ECGI-Finance Working Paper 395, Olin Business School, Washington University, St. Louis.Google Scholar
  • Ton Z (2014) The Good Jobs Strategy: How the Smartest Companies Invest in Employees to Lower Costs and Boost Profits (Houghton Mifflin Harcourt, New York).Google Scholar
  • Velicer WF, Jackson DN (1990) Component analysis versus common factor analysis: Some issues in selecting an appropriate procedure. Multivariate Behav. Res. 25(1):1–28.CrossrefGoogle Scholar
  • Wooldridge JM (2002) Econometric Analysis of Cross-section and Panel Data. (The MIT Press, Cambridge, MA).Google Scholar
  • Wooldridge W, Schmid T, Floyd SW (2008) The middle management perspective on strategy process: Contributions, synthesis, and future research. J. Management 34(6):1190–1221.CrossrefGoogle Scholar
  • Wrzesniewski A (2003) Finding positive meaning in work. Cameron KS, Dutton JE, eds. Positive Organizational Scholarship: Foundations of a New Discipline (Berret-Kohler, San Francisco), 296–308.Google Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.