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A Configurational Theory Of Generalized Exchange In Stakeholder-Oriented Firms, Jeffrey S. Harrison, Violet Ho, Douglas A. Bosse, Donal Crilly

Management Faculty Publications

Recent developments in stakeholder theory have refined our understanding of value creation via bilateral reciprocity. Generalized exchange is another important microfoundational mechanism in value creation, but because of the potential for free-riding it is surprising that some stakeholders contribute more resources to a firm’s value-creating nexus than would be expected based on contractual obligations, and even beyond what bilateral reciprocity would predict. This paper aims to identify the minimum conditions that promote generalized exchange in a firm’s value-creating nexus. Because generalized exchange is causally complex—it can occur in multiple contexts and through various combinations of explanatory factors—a configurational theorizing approach …