Corporate performance implications of extended stakeholder management: New insights on mediation and moderation effects

This paper looks at the extent to which stakeholder pressure is related to the integration of management practices within the firm and at the link of integration with self-reported economic and environmental performance as an outcome variable. It specifically analyses possible mediation and moderation effects through multiple-group AMOS comparing subsamples. As concerns integration, a strong mediation effect is established. As far as country location is concerned, the results show a moderating effect on the paths of integration and internal stakeholder groups and on the paths of integration with, respectively, efficiency, image, risk (as economic performance variables) as well as emissions and inputs (as environmental performance variables). It also shows a negative moderator effect of age on the relationship between integration and inputs and that profitability has a positive moderator effect on the relationship between the pressure from public actors and integration.

Research Highlights► Structural equation model analyses stakeholders-integration-performance link. ► As concerns integration, a strong mediation effect is established. ► Country mainly moderates the link of integration and performance. ► Negative moderation effect of age on the link between integration and inputs. ► Profitability positively moderates the link of public pressure integration.