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LEGAL REGULATION AND THE CONSTRAINT OF CONSTITUENT SATISFACTION[1]
Authors:John A. Wagner  Benjamin Schneider
Abstract:Legal regulations pose both opportunities and constraints that can influence behaviours in and of organizations. This article uses a multiple constituency perspective to examine one such influence. Data from 340 units of a US medical service firm indicate that different legally mandated types of doctor involvement in unit operations are significantly related to variations in the satisfaction reported by manager, employee, and patient constituencies. It is concluded that different forms of legal regulations, which are intended to represent the broad interests of a‘public-at large’constituency, are differentially related to an organization's satisfaction of other special interest constituencies.
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