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Effectuation Publications Library
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A Stakeholder Capabilities Perspective on Entrepreneurial Performance and Value Creation.
2016
Ishrat Ali Sharon Alicia Simmons Saras Sarasvathy
Primary purpose of this paper is to better understand how entrepreneurs create value for different stakeholders. Combining concepts from stakeholder theory and capability approach in welfare and development economics, we theoretically develop the concept of “Stakeholder Capabilities” as unit of value. Using this lens, we examine performance of five Inc. 500 companies and six B-Corporations. By conducting detailed semi-structured interviews with 11 founders, we discovered that while interacting with multiple stakeholders they expended thought and effort to expand various stakeholder capabilities within economic, psychological, social, intellectual and physiological dimensions.