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University of Richmond

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Instrumental Stakeholder Theory Makes Ethically Based Relationship Building Palatable To Managers Focused On The Bottom Line, Jeffrey S. Harrison, Will Felps, Thomas M. Jones Jan 2019

Instrumental Stakeholder Theory Makes Ethically Based Relationship Building Palatable To Managers Focused On The Bottom Line, Jeffrey S. Harrison, Will Felps, Thomas M. Jones

Management Faculty Publications

We appreciate the opportunity to engage in this dialogue with Weitzner and Deutsch (2019) to clarify the meaning and intent of some of the arguments found in our article, “How Applying Instrumental Stakeholder Theory Can Provide Sustainable Competitive Advantage” (Jones, Harrison, & Felps, 2018). We are grateful for the high praise from the authors regarding the rigor and logic of our applications of resource-based criteria to instrumental stakeholder theory (IST). We begin this response by highlighting a few areas of agreement, followed by some points where we disagree.


Agglomeration Effects And Strategic Orientations: Evidence From The U.S. Lodging Industry, Linda Canina, Cathy A. Enz, Jeffrey S. Harrison Jan 2005

Agglomeration Effects And Strategic Orientations: Evidence From The U.S. Lodging Industry, Linda Canina, Cathy A. Enz, Jeffrey S. Harrison

Management Faculty Publications

This study provides evidence regarding the strategic dynamics of competitive clusters. Firms that agglomerate (co-locate) may benefit from the differentiation of competitors without making similar differentiating investments themselves. Alternatively, co-locating with a high percentage of firms with low-cost strategic orientations reduces performance for firms pursuing high levels of differentiation. Further, the lowest-cost providers with the greatest strategic distance from the norm of the competitive cluster reap the greatest benefit from co-location with differentiated firms. We find empirical support for these ideas using a sample of 14,995 U.S. lodging establishments, and controlling for a number of key demand-shaping factors.