We examine the processes involved in the escalation of a plant closure from a local concern to a perceived organizational moral failure that commands national attention. Our empirical case covers the controversy over the decision of telecommunications giant Nokia to close a plant in Germany, despite having received significant state subsidies, and the relocation of production to Hungary and Romania. We conducted an inductive study that utilizes a semiotic analysis to identify how various actors framed the controversial plant closure and (...) sought to cast it as moral failure. Our analysis uncovered two distinctive moral framings of the plant closure and revealed how key actors used evocative labels to frame these events in moral terms. These moral framings drew in additional stakeholders, generated more widespread media coverage, and turned the case into an organizational moral failure in the eyes of the national public. We contribute to the literature on organizational moral failure by theorizing its escalating process and elaborating why and how local events may become moral issues of interest to broader stakeholder groups. (shrink)

Although scholars have long known that entrepreneurship involves the interaction of countless individuals beyond the entrepreneur, traditional performance metrics are limited to capturing the economic value that is created for shareholders. Multiple scholars have suggested that it should be possible to develop a more complete assessment that is able to simultaneously capture both the economic and non-economic consequences of entrepreneurship that exist for the broader network of firm stakeholders. The purpose of this paper is to provide a more nuanced understanding (...) of entrepreneurial performance by operationalizing the concept of stakeholder capabilities. Building on concepts from stakeholder theory and the human development and capability approach in welfare economics, we argue that the pursuit of entrepreneurial opportunities can either create or destroy value for multiple stakeholders, and that this value is best conceived in terms of increases and decreases in individual capabilities. Approaching entrepreneurial performance from a stakeholder capabilities lens has implications for how we view entrepreneurs’ impact on society, what we mean by the creation and destruction of “value,” and how we define failure and success in entrepreneurship. (shrink)