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To the surprise of many in the West, the fall of the USSR in 1991 did not lead to the adoption of liberal democratic government around the world and the much anticipated “end of history.” In fact, authoritarianism has made a comeback, and liberal democracy has been on the retreat for at least the last 15 years culminating in the unthinkable: the invasion of a democratic European country by an authoritarian regime. But why does authoritarianism continue to spread, not only as an alternative to liberal democracy, but also within many liberal democracies where authoritarian leaders continue to gain strength and popularity? In this curated piece, contributors discuss some of the potential contributions of management scholarship to understanding authoritarianism, as well as highlight a number of directions for management research in this area.

Are socially irresponsible employment practices, such as abusive discipline and wage theft, systematically tied to manufacturing outcomes in emerging-market countries? Drawing on a stream of stakeholder theory that emphasizes economic interdependencies and insights from the fields of industrial relations and human resource management, we argue that working conditions within a firm are facets of a systemic approach to value creation and value appropriation. Some manufacturers operate “low road” systems that rest on harmful practices. Others operate “high road” systems in which the need to develop employees’ human capital deters socially irresponsible employment practices. To test the theory, we conduct a large-scale study of labor violations and manufacturing outcomes by analyzing data on over four thousand export-oriented small manufacturers in 48 emerging-market countries. The analysis demonstrates that socially irresponsible employment practices are associated with inferior firm-level manufacturing outcomes even after controlling for the effects of firm size, industry, product mix, production processes, host country, destination markets, and buyer mix. The theory and results suggest an opportunity for multinational corporations to improve corporate social performance in global value chains by encouraging their suppliers to transition to systems of value creation that rely on the development of worker human capital. Funding: A. McGahan received funding from Social Sciences and Humanities Research Council [Grant 435-2016-0075].

The new stakeholder theory (NST) grapples with two canonical questions: Which stakeholders are enfranchised in organizations? How is the value created through stakeholder collaboration distributed and experienced by stakeholders? This paper first describes how the NST builds on original stakeholder theory to ask these two specific questions. The defining features of the NST are (i) a broad range of dependent variables, (ii) descriptiveness, (iii) formalized analysis, (iv) boundaries on stakeholder enfranchisement, and (v) analytic links to other established theories. The paper then assesses the assumptions and implications of this theory for understanding organizational purpose. A primary idea is that the NST conceptualizes purpose as originating in the goals, needs, and interests of stakeholders as complex, nuanced actors. Under the NST, the organization is conceived of as a tool—a functionalized construction—through which enfranchised stakeholders pursue a shared purpose that leads to experiences of stakeholder value in terms that are defined by the relevant stakeholders themselves. The survival and profitability of an organization depends on its effectiveness and efficiency as a tool for accomplishing mutual stakeholder aims, which are what define organizational purpose. History: This paper has been accepted for the Strategy Science Special Issue on Corporate Purpose. Funding: Funded by Social Sciences and Research Council of Canada.

A powerful new stakeholder theory (NST) of strategic management is emerging. The theory, which is yet incomplete, offers novel and precise tools for understanding stakeholder involvement in organizations. This article identifies open questions in the NST in five areas (organizational formation, resource development, claims on value, governance, and performance) and suggests ways in which insights from the resource-based view of the firm advance answers to these questions. The conclusion emphasizes that because stakeholders bind resources to organizations, neither the resource-based view nor the new stakeholder view is complete without the other.

On January, 27, 2017, U.S. President Donald J. Trump issued Executive Order 13769 on immigration and travel (EO 13769), which restricted entry into the U.S. of the citizens of seven primarily Muslim countries. Many academics reacted with outrage, including me and other members of the Academy of Management (AOM), of which I was President at the time. Some scholarly associations condemned EO 13769 as immoral, but the AOM did not immediately issue such a condemnation because the AOM’s Constitution included a policy of no-political-stands (NPSP) and a principle that nobody, including the AOM President, could represent personal views as those of the organization. Within a few weeks, the AOM Constitution was changed, and in October, 2017, the AOM joined other associations in issuing a condemnation. An article was published in this journal on this situation (Tsoukas in J Bus Ethics,https://doi.org/10.1007/s10551-018-3979-y, 2018) that was subsequently amended through a published Correction (Tsoukas in J Bus Ethics,https://doi.org/10.1007/s10551-019-04194-9, 2019), but the Correction only partially addressed the problems in the original. The main contribution of this commentary is to take up the invitation in Tsoukas (2018) to examine the case for insights on theoretical and conceptual questions raised in the literature on prototypicality and moral imagination. It also briefly outlines the most significant omitted errors of fact in Tsoukas (2018) that were not corrected in Tsoukas (2019), and describes the most important methodological problems in Tsoukas (2018). The conclusion suggests that the complex, nuanced, and evolving interactions that unfolded at the AOM are not fully addressed theoretically or conceptually in this literature.

One of the most difficult issues in stakeholder analysis is figuring out which stakeholders and stakeholder groups do not have legitimate claims on an organization (Klein, Mahoney, McGahan, & Pitel...

We conduct a theory-guided review of the literatures on public–private partnerships and grand challenges (GCs). We adopt an organization design approach to review and identify constructs in public–private collaborations (PPCs) that address societal challenges. Our review identifies the complexities of organizing to tackle GCs, highlights the plurality of organizational forms in PPCs, and explores organizational design considerations in these partnerships. Given the elevated role of private actors in these collaborations, our review provides a new understanding of how they can shape a private-public interface that is robust to the scale and scope of global problems. This leads to a rich research agenda on when, why, and how public and private collaborations matter, and their implications for addressing societal challenges.

This chapter offers the reflections of a late-career scholar working on private entrepreneurship in the public interest. The author imagines what she would say if she could reach back in time and offer advice to her early-career self: Figure out what is important about what is changing in the world. Know yourself as a scholar, citizen, and educator. Know what is going on phenomenologically in deeper ways than what may be discussed in the news, or even contemporaneously in the journals. Once you do this, then try to contribute constructively as best you can to peaceable, responsible, satisfying, prosperous developments on the things that are important to you. Drop everything else.

Businesses in a wide range of industries profit from the immigration of vulnerable people who are crossing international boundaries to escape war, famine, poverty, and persecution. I argue that the field of management faces a moral, humanitarian, and social imperative to deal comprehensively with the implications of this fact.

I was the President of the Academy of Management (AOM) in 2016-2017 when U.S. President Donald Trump issued an Executive Order banning immigration and travel to the United States by citizens of seven predominantly Muslim countries (EO13769). While I immediately sought to condemn EO13769 as immoral and as a threat to the AOM, I was only able to issue a condemnation in my own name and not in the name of the AOM because the Board’s Executive Committee correctly determined that a condemnation would have violated the AOM Constitution. This put me in the untenable position of leading an organization operating under principles that conflicted with my personal beliefs about an immoral act of government. The article is a case study on this situation. In it, I explain how EO13769 and other attacks on science threaten the purpose and functioning of the AOM. The case explores a relatively understudied aspect of leadership: the identity of an organization as distinct from the identity of its leader. It also underscores the importance of strengthening democratic institutions of science. I argue that the issuance of statements of condemnation—while important—does not exhaust our responsibilities in society as scholars for investigating, reporting, defending, and protecting the truth about what is going on in the world around us. I conclude by calling us to redouble our commitment to a defining purpose of the AOM, which is to support the scholarship necessary to overcome polarizing politicization of complex social issues.

Research Summary In recent years, strategy scholarship expanded its scope beyond the realm of private firms. Despite notable advances, the field still lacks theoretical and empirical frameworks for fully understanding how public and nonprofit organizations interact with private firms to create and appropriate value. By recognizing the inherent complexity of interactions between organizations with different purposes and the existing challenges for designing effective governance arrangements, we assess how recent scholarship addresses some dilemmas related to both private and public value creation. Based on the extant literature and on some novel aspects raised by the articles in this issue, we also propose a framework to advance strategy research in the field. We emphasize the importance of stakeholder management capabilities among public, private, and nonprofit organizations in pursuit of enhanced public value and continuous support from appreciative stakeholders. Managerial Summary Despite abundant examples of governance arrangements involving public, private, and nonprofit organizations (e.g., public‐private partnerships and alliances involving NGOs, firms, multilateral organizations, public contracting, and so on), the strategic management field has only recently given attention to value creation and value appropriation beyond the scope of private organizations. Here we connect strategic management and public management to identify relevant dimensions that shape value‐creating strategies and underpinning outcomes in public‐private‐nonprofit interactions. We highlight that public value arises from private interests and that the dynamic of value creation and value appropriation in activities involving the public interest can be influenced by not only resource endowments and organizational capabilities but also by the way organizations address and manage stakeholder expectations.

Purpose is a concept often used in managerial communities to signal and define a firm’s benevolent and pluralistic approach to its stakeholders beyond its focus on shareholders. While some evidence has linked purpose to positive organizational outcomes such as growth, employee satisfaction, innovation, and superior stock market performance, the definition and application of purpose in management research has been varied and frequently ambiguous. We review literature streams that invoke purpose in the for-profit firm and propose a unifying definition. Next, we develop a framework to study purpose that decouples its framing and formalization within firms from its realization, thus helping to avoid conflation of the presence of purpose with positive organizational outcomes. The framework also highlights internal and external drivers that shape the framing of purpose as well as the influence of the institutional context on its adoption and effectiveness. Finally, we provide a rich agenda for future research on purpose.

Open innovation includes external knowledge sources and paths to market as complements to internal innovation processes. Open innovation has to date been driven largely by business objectives, but the imperative of social challenges has turned attention to the broader set of goals to which open innovation is relevant. This introduction discusses how open innovation can be deployed to address societal challenges—as well as the trade-offs and tensions that arise as a result. Against this background we introduce the articles published in this Special Section, which were originally presented at the sixth Annual World Open Innovation Conference.

This paper reports the results of a Bayesian analysis on large-scale empirical data to assess the effectiveness of eleven types of COVID-control policies that have been implemented at various levels of intensity in 40 countries and U.S. states since the onset of the pandemic. The analysis estimates the marginal impact of each type and level of policy as implemented in concert with other policies. The purpose is to provide policymakers and the general public with an estimate of the relative effectiveness of various COVID-control strategies. We find that a set of widely implemented core policies reduces the spread of virus but not by enough to contain the pandemic except in a few highly compliant jurisdictions. The core policies include the cancellation of public events, restriction of gatherings to fewer than 100 people, recommendation to stay at home, recommended restrictions on internal movement, implementation of a partial international travel ban, and coordination of information campaigns. For the median jurisdiction, these policies reduce growth rate in new infections from an estimated 270% per week to approximately 49% per week, but this impact is insufficient to prevent eventual transmission throughout the population because containment occurs only when a jurisdiction reduces growth in COVID infection to below zero. Most jurisdictions must also implement additional policies, each of which has the potential to reduce weekly COVID growth rate by 10 percentage points or more. The slate of these additional high-impact policies includes targeted or full workplace closings for all but essential workers, stay-at-home requirements, and targeted school closures.

How do firms design incentives compatible with environmental protection? The new institutional economics identifies the challenges of governing common-pool resources and the difficulties of interna...

By introducing the concept of ‘structural advocacy organizations’, this study theorizes and tests the boundary conditions within which institutions designed to protect the rights of disenfranchised...

Perhaps the most compelling Grand Challenge in health care is addressing diseases that primarily afflict the poor. Policies and practices conceived in high-income countries for improving the lives ...

Research Summary We examine how formal collaboration allows organizations to resolve performance trade‐offs that cannot be resolved informally. The theory is tested on U.S. fire departments, which pursue goals that sometimes conflict: reducing casualties and saving property. By relying on intrinsic motivation, informal collaboration reduces casualties and saves some property above what departments can achieve alone. Formal contracts are needed to achieve additional performance improvements on the goal of saving property. Contracts improve performance above what is accomplished informally by compelling collaboration even under casualty risk. Prior studies of collaboration that do not account for ex ante informality or performance trade‐offs may misstate the impact of collaboration on organization performance. Management Summary Like many organizations, U.S. fire departments pursue multiple goals that sometimes conflict. For fire departments, these goals are reducing casualties and saving property. Goal conflict arises when firefighter lives are put at risk to save property. To improve performance on both goals, fire departments often collaborate with neighboring departments in nearby jurisdictions. In this paper, we examine how performance on both goals improves when departments collaborate informally through handshake agreements. However, performance in saving property—the goal that is less intrinsically motivating for firefighters—improves even more when the collaborating departments implement a formal contract. At the same time, casualties increase slightly. This is because a contract creates an obligation for an assisting department to save property even under a risk to firefighters' lives. The analysis shows how formal contracts are implemented to resolve trade‐offs that cannot be resolved informally. We conclude that the performance improvements associated with collaboration may be quite different than the improvements that follow the implementation of formal contracts. This is because contracts may deal only with marginal trade‐offs between the goals of the collaborators.

After more than 30 years of efforts to eliminate polio, India was certified polio free by WHO in 2014. The final years prior to polio elimination were characterised by concentrated efforts to vaccinate hard-to-reach groups in the state of Uttar Pradesh, including migrant workers, religious minority Muslims and impoverished communities with poor pre-existing social support systems. This article aims to describe the management strategies employed by India to improve the deployment and acceptance of vaccines among hard-to-reach groups in Uttar Pradesh in the final years prior to polio elimination.Three main management principles contributed to polio elimination among the hardest to reach in Uttar Pradesh: bundling of health services, local stakeholder engagement and accountability mechanisms for public health initiatives. In an effort to market the polio campaign as an authentic health-oriented programme, vaccine acceptance was improved by packaging other basic healthcare services such as routine check-ups and essential medications. India also prioritised local stakeholder engagement by using influential community leaders to reach vaccine hesitant groups. Lastly, the accountability mechanisms developed between non-profit organisations and decision-makers in the field ensured accurate reporting and identified deficiencies in healthcare worker training. The lessons learnt from India’s polio vaccination programme have important implications for the implementation of future mass vaccination initiatives, particularly when trying to reach vulnerable communities.

The notion of social impact has been the subject of considerable interest in multiple literatures. Researchers studying strategy, organization theory, organizational behavior, human resource manage...

What is capitalism? One of humanity’s greatest inventions, and the greatest source of prosperity the world has ever seen? A menace on the verge of destroying the planet and destabilizing society? O...

In this panel symposium, we seek to build on growing efforts by management scholars to engage with grand challenges and the United Nations’ Sustainable Development Goals (SDGs). Reflective of the A...

The organizations and institutions with which we interact in our everyday lives are heavily implicated in the rising levels of global inequality. We develop understanding of the ways in which a preference in social structures for the free market over other forms of economic organization has made inequality almost inevitable. This has been accompanied by organizational practices such as hiring, promotion and reward allocation, that maintain and enhance societal inequalities. The mutually constitutive relationship between organizations and institutions in the reproduction of inequality are exposed throughout.

Important advances regarding the geography of innovation focus on the competitiveness of cities, nations, and regions through the establishment of innovation clusters and national systems of innovation. In this chapter, this logic is linked with emerging scholarship on innovation for inclusive growth, which focuses on entrepreneurialism in resource-limited settings. By connecting the two streams, the chapter conceptualizes relationships between communities as ‘innovation highways’. It is argued that economic and public policy seeking to advance both prosperity and inclusiveness would benefit from deeper and more extensive consideration of collaboration between communities. The chapter argues that future research on the geography of innovation will take innovation highways between communities as central to prosperity, and consider the governance of these highways as a central mechanism of inclusiveness.

True and long-lasting change only happens if the structure of the underlying system is changed. Costas Markides and Anita McGahan explain why.