Equity and Expectancy Considerations in Stakeholder Action

Abstract

An “interest-based” view of stakeholder action—a view that stakeholders act against organizations to safeguard or promote their own interests—underlies much research in stakeholder theory. In this article, the author uses two motivation theories—equity theory and expectancy theory—to address the general research question, “What are the conditions under which stakeholders will take action against an organization?” Doing so allows for a more explicit elaboration of an interest-based approach to understanding stakeholder action. Applying these theories, the author develops propositions concerning the conditions that are likely to precipitate stakeholder sanctions directed at a focal organization and develops a basic framework for understanding when such stakeholder action is likely. Finally, the author discusses the theoretical and practical implications of this work.