Drawing on problemistic search arguments, we suggest that stakeholder sentiments affect firms' search and risk taking. Specifically, similar to the logic underlying performance feedback, we suggest that a shortfall in stakeholder sentiments from historically and socially derived aspirations, affects firms' decision making. In comparison to financial performance indicators, we suggest that stakeholder sentiments describe a more comprehensive picture about the multi-dimensionality of managers' goal perspective and, hence, adds value to our current understanding of problem driven search.
|Title of host publication||Academy of Management Proceedings 2019|
|Number of pages||1|
|Place of Publication||Briarcliff, NY|
|Publisher||Academy of Management|
|Publication status||Published - 2019|
|Series||Academy of Management Proceedings|
Nauhaus, S., Luger, J., & Raisch, S. (2019). Stakeholder Sentiment, Problemistic Search, and Firm Risk Taking: A Behavioral Investigation. In G. Atinc (Ed.), Academy of Management Proceedings 2019 Academy of Management. Academy of Management Proceedings https://doi.org/10.5465/AMBPP.2019.15577abstract