The adaptive capacity of stakeholder-oriented firms with social purpose vis-à-vis shareholder primacy firms: A comparative assessment

This paper provides a comparative assessment of the adaptive capacity of stakeholder-oriented firms with social purpose vis-à-vis shareholder primacy firms. To this end, we apply evolutionary theory to examine the differential costs and benefits incurred by these two firm types at each stage of firm adaptation—i.e., (issue) recognition, variation (ideation of solutions), selection of alternative solutions, and retention (replication and routinization). We conclude by providing an agenda for future research that can contribute to the extant literature on (social) purpose, evolutionary theory, and stakeholder theory.