Stakeholder Theory and the Resource-Based View of the Firm (Freeman et al, 2024)

Welcome to Revise and Resubmit, the podcast where we break down groundbreaking research and ask the questions that keep pushing knowledge forward. Today, we’re diving into a pivotal conversation about two of the most influential theories in management—Stakeholder Theory and the Resource-Based View (RBV) of the Firm. Our spotlight is on a remarkable paper titled Stakeholder Theory and the Resource-Based View of the Firm by R. Edward Freeman, Sergiy D. Dmytriyev, and Robert A. Phillips, published in the Journal of Management by Sage. This paper unpacks the origins and evolution of both theories, exploring why RBV became a dominant paradigm while Stakeholder Theory evolved on a different trajectory. But here’s where things get really interesting: the authors argue that RBV, despite its success, is incomplete. They propose that Stakeholder Theory can add critical dimensions to RBV—normativity, sustainability, people, and cooperation—that could reshape how we think about strategy and management. So, here’s the question: If combining Stakeholder Theory with RBV could revolutionize how firms operate, what’s stopping us from fully integrating these two perspectives? A special thanks to R. Edward Freeman, Sergiy D. Dmytriyev, Robert A. Phillips, and Sage for advancing this crucial dialogue. Let’s get into it! Reference Freeman, R. E., Dmytriyev, S. D., & Phillips, R. A. (2021). Stakeholder Theory and the Resource-Based View of the Firm. Journal of Management, 47(7), 1757-1770. https://doi.org/10.1177/0149206321993576