Hostname: page-component-586b7cd67f-rdxmf Total loading time: 0 Render date: 2024-11-27T12:04:40.330Z Has data issue: false hasContentIssue false
  • English
  • Français

Investigating the association of mission statement and performance using the component and stakeholder approaches in an emerging market

Published online by Cambridge University Press:  11 July 2022

Regina M. Lizares Open the ORCID record for Regina M. Lizares [Opens in a new window]
Regina M. Lizares*
Affiliation:
University of the Philippines, Quezon City, Philippines
*
Author for correspondence: Regina M. Lizares, E-mail: [email protected]
Get access Rights & Permissions [Opens in a new window]

Abstract

This study explores the mission statement–performance relationship of 247 Philippine-listed firms by employing the practical component and theoretical stakeholder approaches to studying mission statements. Using content and regression analyses, results indicate that: (1) the existence of a mission statement and the inclusion of customer in the statement are positively and significantly associated with performance; and (2) the inclusion of society and public image is negatively and significantly associated with performance. Aside from contributing to the growing body of theory-based, quantitative research on mission statements, this study offers another view within an emerging market context. Furthermore, it reinforces the value of having a mission statement and the importance of acknowledging salient and dominant stakeholders in the statement.

Keywords

Component approachcontent analysismission statementPhilippinesstakeholder approach
Type
Research Article
Information
Journal of Management & Organization , First View , pp. 1 - 25
Copyright
Copyright © The Author(s), 2022. Published by Cambridge University Press in association with the Australian and New Zealand Academy of Management

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Alegre, I., Berbegal-Mirabent, J., Guerrero, A., & Mas-Machuca, M. (2018). The real mission of the mission statement: A systematic review of the literature. Journal of Management & Organization, 24, 456–473. doi: 10.1017/jmo.2017.82CrossRefGoogle Scholar
Amran, N. A. (2012). Mission statement and company performance: Evidence from Malaysia. International Journal of Business and Behavioral Sciences, 2(4), 98–107.Google Scholar
Analoui, F., & Karami, A. (2002). CEOs and development of the meaningful mission statement. Corporate, 2(3), 13–20. doi: 10.1108/14720700210440044Google Scholar
Attrill, P., Omran, M., & Pointon, J. (2005). Company mission statements and financial performance. Corporate Ownership and Control, 2(3), 28–35. doi: 10.22495/cocv2i3p3CrossRefGoogle Scholar
Baetz, M. C., & Bart, C. K. (1996). Developing mission statements which work. Long Range Planning, 29, 526–533. doi: 10.1016/0024-6301(96)00044-1CrossRefGoogle Scholar
Barney, J. B., & Harrison, J. S. (2020). Stakeholder theory at the crossroads. Business & Society, 59, 203–212. doi: 10.1177/0007650318796792CrossRefGoogle Scholar
Bart, C. K. (1996). The impact of mission on firm innovativeness. International Journal of Technology Management, 11(3), 479–493.Google Scholar
Bart, C. K. (1997a). Industrial firms and the power of mission. Industrial Marketing Management, 26, 371–383. doi: 10.1016/S0019-8501(96)00146-0CrossRefGoogle Scholar
Bart, C. K. (1997b). Sex, lies, and mission statements. Business Horizons, 40(6), 9–18. doi: 10.1016/S0007-6813(97)90062-8CrossRefGoogle Scholar
Bart, C. K. (2000). Mission use and innovation in the airline industry: An exploratory investigation. International Journal of Technology Management, 2(5/6/7/8), 475–489.CrossRefGoogle Scholar
Bart, C. K., & Baetz, M. C. (1998). The relationship between mission statements and firm performance: An exploratory study. Journal of Management Studies, 35(6), 823–853. doi: 10.1111/1467-6486.00121CrossRefGoogle Scholar
Bart, C. K., Bontis, N., & Taggar, S. (2001). A model of the impact of mission statements on firm performance. Management Decision, 39, 19–35. doi: 10.1108/EUM0000000005404CrossRefGoogle Scholar
Bart, C. K., & Hupfer, M. (2004). Mission statements in Canadian hospitals. Journal of Health Organization and Management, 18, 92–110. doi: 10.1108/14777260410538889CrossRefGoogle ScholarPubMed
Bart, C. K., & Tabone, J. C. (1999). Mission statement content and hospital performance in the Canadian not-for-profit health care sector. Health Care Management Review, 24(3), 18–29.CrossRefGoogle ScholarPubMed
Bartkus, B. R., & Glassman, M. (2008). Do firms practice what they preach? The relationship between mission statements and stakeholder management. Journal of Business Ethics, 83(2), 207–216. doi: 10.1007/s10551-007-9612-0CrossRefGoogle Scholar
Bartkus, B. R., Glassman, M., & McAfee, R. B. (2000). Mission statements: Are they smoke and mirrors? Business Horizons, 43(6), 23–28. doi: 10.1016/S0007-6813(00)80018-XCrossRefGoogle Scholar
Bartkus, B. R., Glassman, M., & McAfee, R. B. (2004). A comparison of the quality of European, Japanese and U.S. mission statements: A content analysis. European Management Journal, 22, 393–401. doi: 10.1016/j.emj.2004.06.013CrossRefGoogle Scholar
Bartkus, B. R., Glassman, M., & McAfee, R. B. (2006). Mission statement quality and financial performance. European Management Journal, 24, 86–94. doi: 10.1016/j.emj.2005.12.010CrossRefGoogle Scholar
Braun, S., Wesche, J. S., Frey, D., Weisweiler, S., & Peus, C. (2012). Effectiveness of mission statements in organizations – A review. Journal of Management & Organization, 18, 430–444. doi: 10.5172/jmo.2012.18.4.430CrossRefGoogle Scholar
Campbell, D., Shrives, P., & Bohmbach-Saager, H. (2001). Voluntary disclosure of mission statements in corporate annual reports: Signaling what and to whom? Business and Society Review, 106, 65–87. doi: 10.1111/0045-3609.00102CrossRefGoogle Scholar
Collins, J. C., & Porras, J. I. (1991). Organizational vision and visionary organizations. California Management Review, 34(1), 30–52. doi: 10.2307/41166682CrossRefGoogle Scholar
Crane, A., & Ruebottom, T. (2011). Stakeholder theory and social identity: Rethinking stakeholder identification. Journal of Business Ethics, 102, 77–87. doi: 10.1007/s10551-011-1191-4CrossRefGoogle Scholar
David, F. R. (1989). How companies define their mission. Long Range Planning, 22(1), 90–97. doi: 10.1016/0024-6301(89)90055-1CrossRefGoogle Scholar
David, F. R., & David, F. R. (2003). It's time to redraft your mission statement. Journal of Business Strategy, 24(1), 11–14. doi: 10.1108/02756660310508218CrossRefGoogle Scholar
David, F. R., & David, F. R. (2017). Strategic management: A competitive advantage approach, concepts and cases (16th ed.). Upper Saddle River, NJ: Pearson-Prentice-Hall.Google Scholar
Desmidt, S., Prinzie, A., & Decramer, A. (2011). Looking for the value of mission statements: A meta-analysis of 20 years of research. Management Decision, 49, 468–483. doi: 10.1108/00251741111120806CrossRefGoogle Scholar
Dharmadasa, P., Maduraapeurma, Y., & Herath, S. K. (2012). Mission statements and company financial performance revisited. International Journal of Managerial and Financial Accounting, 4, 314–324. doi: 10.1504/IJMFA.2012.047855CrossRefGoogle Scholar
Donaldson, T., & Preston, L. E. (1995). The stakeholder theory of the corporation: Concepts, evidence, and implications. Academy of Management Review, 20, 65–91. doi: 10.5465/AMR.1995.9503271992CrossRefGoogle Scholar
Drucker, P. F. (1986). Management: Tasks, responsibilities, practices. New York, NY: Truman Talley Books/E. P. Dutton.Google Scholar
Dumanig, F. P., & Symaco, L. P. (2020). Internationalisation of higher education in Malaysia and the Philippines: A comparative analysis of mission and vision statements of selected universities. Journal of Multilingual and Multicultural Development, 43, 154–166. doi: 10.1080/01434632.2020.1735401.CrossRefGoogle Scholar
Freeman, R. E. (1984). Strategic management: A stakeholder approach. Marshfield, MA: Pitman Publishing, Inc.Google Scholar
Friedman, A. L., & Miles, S. (2006). Stakeholders: Theory and practice. Oxford: Oxford University Press.Google Scholar
Harrison, J. S., & Wicks, A. C. (2013). Stakeholder theory, value, and firm performance. Business Ethics Quarterly, 23, 97–124. doi: 10.5840/beq20132314CrossRefGoogle Scholar
Hillman, A. J., & Keim, G. D. (2001). Shareholder value, stakeholder management, and social issues: What's the bottom line? Strategic Management Journal, 22, 125–139. doi: 10.1002/1097-0266(200101)22:2 < 125::AID-SMJ150>3..CO;2-H3.0.CO;2-H>CrossRefGoogle Scholar
Ireland, R. D., & Hitt, M. A. (1992). Mission statements: Importance, challenge, and recommendations for development. Business Horizons, 35(3), 34–42. doi: 10.1016/0007-6813(92)90067-JCrossRefGoogle Scholar
Kemp, S., & Dwyer, L. (2003). Mission statements of international airlines: A content analysis. Tourism Management, 24, 635–653. doi: 10.1016/S0261-5177(03)00049-9CrossRefGoogle Scholar
Khanna, T., & Palepu, K. (1997). Why focused strategies may be wrong for emerging markets. Harvard Business Review, 75(4), 41–51.Google Scholar
Kirk, G., & Beth Nolan, S. (2010). Nonprofit mission statement focus and financial performance. Nonprofit Management & Leadership, 20, 473–490. doi: 10.1002/NML.20006CrossRefGoogle Scholar
Klemm, M., Sanderson, S., & Luffman, G. (1991). Mission statements: Selling corporate values to employees. Long Range Planning, 24(3), 73–78. doi: 10.1016/0024-6301(91)90187-sCrossRefGoogle ScholarPubMed
Laplume, A. O., Harrison, J. S., Zhang, Z., Yu, X., & Walker, K. (2021). Evidence of an inverted U-shaped relationship between stakeholder management performance variation and firm performance. Business Ethics Quarterly, 32, 272–298. doi: 10.1017/beq.2021.19.CrossRefGoogle Scholar
Laplume, A. O., Sonpar, K., & Litz, R. A. (2008). Stakeholder theory: Reviewing a theory that moves us. Journal of Management, 34, 1152–1189. doi: 10.1177/0149206308324322CrossRefGoogle Scholar
Leuthesser, L., & Kohli, C. (1997). Corporate identity: The role of mission statements. Business Horizons, 40(3), 59–66. doi: 10.1016/S0007-6813(97)90053-7CrossRefGoogle Scholar
Lin, Q., Huang, Y., Zhu, R., & Zhang, Y. (2019). Comparative analysis of mission statements of Chinese and American Fortune 500 companies: A study from the perspective of linguistics. Sustainability, 11(18), 4905–4922. doi: 10.3390/su11184905CrossRefGoogle Scholar
Mazza, C. (1999). Claim, intent, and persuasion: Organizational legitimacy and the rhetoric of corporate mission statements. New York, NY: Springer Science & Business Media.CrossRefGoogle Scholar
Mission and Vision Statements. (2018). Bain. Retrieved from https://www.bain.com/insights/management-tools-mission-and-vision-statements/Bain.Google Scholar
Mitchell, R. K., Agle, B. R., & Wood, D. J. (1997). Toward a theory of stakeholder identification and salience: Defining the principle of who and what really counts. Academy of Management Review, 22, 853–886. doi: 10.2307/259247CrossRefGoogle Scholar
Neville, B. A., Bell, S. J., & Whitwell, G. J. (2011). Stakeholder salience revisited: Refining, redefining, and refueling an underdeveloped conceptual tool. Journal of Business Ethics, 102, 357–378. doi: 10.1007/s10551-011-0818-9CrossRefGoogle Scholar
O'Gorman, C., & Doran, R. (1999). Mission statements in small and medium-sized businesses. Journal of Small Business Management, 37(4), 59–66.Google Scholar
Omran, M., Attrill, P., & Pointon, J. (2002). Shareholders versus stakeholders: Corporate mission statements and investor returns. Business Ethics: A European Review, 11, 318–326. doi: 10.1111/1467-8608.00291CrossRefGoogle Scholar
Palmer, T. B., & Short, J. C. (2008). Mission statements in U.S. colleges of business: An empirical examination of their content with linkages to configurations and performance. Academy of Management Learning & Education, 7, 454–470. doi: 10.5465/amle.2008.35882187CrossRefGoogle Scholar
Parmar, B. L., Freeman, R. E., Harrison, J. S., Wicks, A. C., Purnell, L., & de Colle, S. (2010). Stakeholder theory: The state of the art. Academy of Management Annals, 4(1), 403–445. doi: 10.1080/19416520.2010.495581CrossRefGoogle Scholar
Pascasio, M. C., Dimafelix, A. D., Gamis, J. A. F., Chavez, L. T., & Robredo, J. E. P. (2019). Demystifying the household final consumption expenditure (HFCE) in the Philippine System of National Accounts (PSNA). Retrieved from https://psa.gov.ph/sites/default/files/1.1.1%20Demystifying%20the%20Household%20Final%20Consumption%20Expenditure%20%28HFCE%29%20in%20the%20Philippine%20System%20of%20National%20Accounts%20%28PSNA%29_.pdf.Google Scholar
Pearce, J. A. (1982). The company mission as a strategic tool. Sloan Management Review (pre-1986), 23(3), 15–24.Google Scholar
Pearce, J. A., & David, F. (1987). Corporate mission statements: The bottom line. Academy of Management Perspectives, 1, 109–115. doi: 10.5465/ame.1987.4275821CrossRefGoogle Scholar
Peyrefitte, J. (2012). The relationship between stakeholder communication in mission statements and shareholder value. Journal of Leadership, Accountability and Ethics, 9(3), 28–48.Google Scholar
Phillips, R. A., Barney, J. B., Freeman, R. E., & Harrison, J. S. (2019). Stakeholder theory. In Harrison, J. S., Barney, J. B., Freeman, R. E. & Phillips, R. A. (Eds.), The Cambridge handbook of stakeholder theory (pp. 3–18). Cambridge: Cambridge University Press.CrossRefGoogle Scholar
Rarick, C. A., & Vitton, J. (1995). Corporate strategy: Mission statements make cents. Journal of Business Strategy, 16(1), 11–12. doi: 10.1108/eb039673CrossRefGoogle Scholar
Reynolds, S. J., Schultz, F. C., & Hekman, D. R. (2006). Stakeholder theory and managerial decision-making: Constraints and implications of balancing stakeholder interests. Journal of Business Ethics, 64, 285–301. doi: 10.1007/S10551-005-5493-2CrossRefGoogle Scholar
Rossi, M. (2016). The impact of age on firm performance: A literature review. Corporate Ownership & Control, 13(2), 217–223. doi: 10.22495/cocv13i2c1p3CrossRefGoogle Scholar
Schwab, K. (2019). The global competitiveness report 2019. World Economic Forum. Retrieved from http://www3.weforum.org/docs/WEF_TheGlobalCompetitivenessReport2019.pdf.Google Scholar
Securities and Exchange Commission (SEC). (2017). MC No. 15 s.2017 – Integrated annual corporate governance report (I-ACGR). Retrieved from https://www.sec.gov.ph/mc-2017/mc-no-15-s-2017-integrated-annual-corporate-governance-report-i-acgr/.Google Scholar
Sidhu, J. (2003). Mission statements: Is it time to shelve them? European Management Journal, 21, 439–446. doi: 10.1016/S0263-2373(03)00072-0CrossRefGoogle Scholar
Spear, S. (2017). Impression management activity in vision, mission, and values statements: A comparison of commercial and charitable organizations. International Studies of Management & Organization, 47, 159–175. doi: 10.1080/00208825.2017.1256165CrossRefGoogle Scholar
Stallworth Williams, L. (2008). The mission statement: A corporate reporting tool with a past, present, and future. The Journal of Business Communication (1973), 45, 94–119. doi: 10.1177/0021943607313989CrossRefGoogle Scholar
Sufi, T., & Lyons, H. (2003). Mission statements exposed. International Journal of Contemporary Hospitality Management, 15, 255–262. doi: 10.1108/09596110310482173CrossRefGoogle Scholar
The World Bank. (n.d.). Market capitalization of listed domestic companies (% of GDP) – Philippines. Retrieved from https://data.worldbank.org/indicator/CM.MKT.LCAP.GD.ZS?view=chart&locations=PH.Google Scholar
U.S. Department of State. (2019). 2019 investment climate statements: Philippines. Retrieved from https://www.state.gov/reports/2019-investment-climate-statements/philippines__trashed/.Google Scholar
van Nimwegen, G., Bollen, L., Hassink, H., & Thijssens, T. (2008). A stakeholder perspective on mission statements: An international empirical study. International Journal of Organizational Analysis, 16, 61–82. doi: 10.1108/19348830810915505CrossRefGoogle Scholar
Vogt, J. (1994). Demystifying the mission statement. Nonprofit World, 12(1), 29–32.Google Scholar
Yadav, N., & Sehgal, V. (2019). India's Super 50 companies and their mission statement: A multifold perspective. Journal of Strategy and Management, 12, 208–226. doi: 10.1108/JSMA-08-2018-0082CrossRefGoogle Scholar