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Understanding strategic responses to interest group pressures

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  • Scott D. Julian
  • Joseph C. Ofori‐Dankwa
  • Robert T. Justis

Abstract

With the increasing prominence of special interest group activity in the organizational external environment, we build on the stakeholder literature on strategic management to explain how organizations respond to pressures from such groups. Using a model integrating institutional, resource dependence, resource‐based, and cognitive theoretical perspectives, we examine the restaurant industry's response to the fat reduction pressure campaign run by a nutritional interest group, the National Heart Saver's Association (NHSA) in the early 1990s. Our findings indicate that susceptibility to institutional pressures partially affected accommodation to NHSA's demands, and more strongly affected organizational cognitions of those pressures. Our measure of resource dependence did not directly affect accommodation, but was significantly related to managerial cognitions. Resource‐based factors had a strong direct effect on the extent of accommodation to the pressures of NHSA, and partially influenced measures of cognition. Further, our findings indicate that managerial cognition strongly influenced an organization's response to NHSA pressure. From these results we suggest strategies for managers as they try to make sense of and respond to interest group pressures. We also point to future avenues of inquiries for researchers. Copyright © 2008 John Wiley & Sons, Ltd.

Suggested Citation

  • Scott D. Julian & Joseph C. Ofori‐Dankwa & Robert T. Justis, 2008. "Understanding strategic responses to interest group pressures," Strategic Management Journal, Wiley Blackwell, vol. 29(9), pages 963-984, September.
    • Handle: RePEc:bla:stratm:v:29:y:2008:i:9:p:963-984
    DOI: 10.1002/smj.698
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    Cited by:

    1. Khan, Habib Zaman & Bose, Sudipta & Johns, Raechel, 2020. "Regulatory influences on CSR practices within banks in an emerging economy: Do banks merely comply?," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 71(C).
    2. Giarratana, Marco S. & Roca, Esther, 2010. "Community-based strategies in action: building and sustaining a product differentiation advantage," IC3JM - Estudios = Working Papers id-10-01, Instituto Mixto Carlos III - Juan March de Ciencias Sociales (IC3JM).
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    4. Taryn De Mendonca & Yan Zhou, 2020. "When companies improve the sustainability of the natural environment: A study of large U.S. companies," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 801-811, March.
    5. Ilya Okhmatovskiy & Robert J. David, 2012. "Setting Your Own Standards: Internal Corporate Governance Codes as a Response to Institutional Pressure," Organization Science, INFORMS, vol. 23(1), pages 155-176, February.
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    7. Ranjani Krishnan & Michelle H. Yetman, 2011. "Institutional Drivers of Reporting Decisions in Nonprofit Hospitals," Journal of Accounting Research, Wiley Blackwell, vol. 49(4), pages 1001-1039, September.
    8. Karen Chinander Dye & J. P. Eggers & Zur Shapira, 2014. "Trade-offs in a Tempest: Stakeholder Influence on Hurricane Evacuation Decisions," Organization Science, INFORMS, vol. 25(4), pages 1009-1025, August.
    9. Stephanie Lu Wang & Yejee Lee & Dan Li, 2024. "Smart disclosure: an enabler for multinationals to reduce human rights violations in global supply chains," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 55(4), pages 450-469, June.
    10. Luis Diestre & Juan Santaló, 2020. "Why Do Firms Suffer Differently from Input Stigmatization? The Costs of Removing Stigmatized Inputs," Organization Science, INFORMS, vol. 31(1), pages 47-66, January.
    11. Min, Byung-Seong & Chen, Chien-Nan & Tien, Chengli, 2022. "Firms' responses to corporate governance reform in an emerging economy from the perspective of institutional logics," Journal of Business Research, Elsevier, vol. 147(C), pages 278-289.
    12. Li Ma & Yue Cao & Dake Jiang & Yang Gao & Xiaomin Du, 2020. "Does ethics really matter to the sustainability of new ventures? The relationship between entrepreneurial ethics, firm visibility and entrepreneurial performance," PLOS ONE, Public Library of Science, vol. 15(1), pages 1-23, January.
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    14. A. J. Guerber & Vikas Anand & Alan E. Ellstrand & Matthew A. Waller & Iris Reychav, 2020. "Extending the Situational Crisis Communication Theory: The Impact of Linguistic Style and Culture," Corporate Reputation Review, Palgrave Macmillan, vol. 23(2), pages 106-127, May.
    15. Zhongju Liao & Chen Weng & Chen Shen, 2020. "Can public surveillance promote corporate environmental innovation? The mediating role of environmental law enforcement," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(6), pages 1519-1527, November.
    16. Gilbert Silvius & Ron Schipper, 2019. "Planning Project Stakeholder Engagement from a Sustainable Development Perspective," Administrative Sciences, MDPI, vol. 9(2), pages 1-22, June.

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