PROMOTING LONG-TERM SHAREHOLDER VALUE BY "COMPETING" FOR ESSENTIAL STAKEHOLDERS: A NEW, MULTISIDED MARKET LOGIC FOR TOP MANAGERS.

The single-minded pursuit of a short-termshareholder value maximization "mantra" by top managers often results in long-term value destruction for shareholders. We explain this paradox and develop an alternate, market-based approach labeled "competing for essential stakeholders" (CES). CES provides levers that promote long-term value creation for shareholders and for other essential firm stakeholders. Top managers using CES act as "operators" of the firm as a multisided marketplace. Increases in value creation for members on one side of the market make membership more attractive to those occupying the other sides, and vice versa. The result is increased value creation for all essential stakeholder groups. We discuss benefits of and barriers to CES. [ABSTRACT FROM AUTHOR]