Predicting organisational objectives: role of stakeholder influence and volatility of environmental sectors

Abstract

Investigates the link between stakeholder influence and environmental sector volatility on organizational objectives. Uses a questionnaire survey (with findings drawn from 86 firms listed in Industrial Compustat) to determine the three most important long‐term objectives for the organization and the level of influence five different stakeholder groups have on strategic decision making. Reports that three significant associations were revealed between stakeholder influence and profitability. Performs Pearson correlation tests to provide validity and stepwise regression to determine the predictive power of stakeholder and environmental sector volatility on objectives. Finds that customer influence was the only stakeholder group which failed to be significantly linked to any organizational objectives. Concludes that both stakeholder influence and environmental sector volatility are important in determining organizational objectives. Notes limitations of the study due to the small sample size and recommends areas for further research.

Citation

Drago, W.A. (1998), "Predicting organisational objectives: role of stakeholder influence and volatility of environmental sectors", Management Research News, Vol. 21 No. 9, pp. 16-28. https://doi.org/10.1108/01409179810781400