The Multiple Constituency Model Of Performance

 

In the multiple constituency view of organizational effectiveness, a firm’s performance effectiveness in evaluated in the context of its ability to meet the objectives of stakeholders who provide resources to the organization (Barney 2002; Connolly, Conlon et al. 190; Freeman 194; Pfeffer and Salancik 1978)

Yuchtman and Seashore’s (1967) “system resource” approach emphasizes the interests of those that supply vital resources as the critical evaluative criteria. They argued that because stakeholders provide resources to the organization, they have an interest in how those resource are used.

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