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Why do firms strive for non-financial performance

Thomas Zellweger, Robert S. Nason, M. Nordqvist & Candida Brush

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abstract This paper develops a social identity based rationale for why firms strive for non-pecuniary performance outcomes. It extends current social and financial rationales for such motivations. Drawing from social identity and organizational reputation theories, we show that identity overlaps between managers and organizations create incentives to protect and build corporate reputation. These incentives motivate managers to produce non-pecuniary performance outcomes that satisfy stakeholders. We argue that emotional bonds of managers to their organizations create identity overlaps. Further, the incentives to build and protect corporate reputation is moderated by the type of the manager's commitment. We use the family business, a particularly high identity overlap organization, as a context to explore our arguments. Propositions and future directions are included.
   
type conference paper (English)
   
keywords Nonfinancial performance, family firms
   
project Strategic Entrepreneurship in Family Firms
name of conference Theories of the Family Enterprise Research Conference (Boston)
date of conference 7-6-2009
page(s) 1
publisher Northeastern University
review double-blind review
   
citation Zellweger, T., Nason, R. S., Nordqvist, M., & Brush, C. (2009). Why do firms strive for non-financial performance. In , pp.1: Northeastern University.