How and Why? A Review of Corporate Political Activity Predictors and Actions

Abstract

In this review, we provide a framework for understanding both the predictors and approaches of CPA that firms undertake to achieve their objectives. We identify the predictors of CPA and classify them into two distinct categories: internal and external. In addition, we suggest that CPA approaches will vary depending on the firm’s goal to either manage or mitigate regulation and legislation as compared to attempting to pass new bills into law. We conclude by suggesting several future CPA research directions for management scholars.

Emerging market multinational corporations' cross‐border mergers and acquisitions and political distance: Does corporate political activity matter?

“…Nonmarket activity research has increased dramatically in recent years (Brown et al, 2022; Hadani et al, 2017; Lawton et al, 2013). In addition, nonmarket activity in international business research has highlighted the importance of foreign firms engaging in the political process when competing in cross‐border markets (Brown et al, 2022; Sun et al, 2021).…”

“…Nonmarket activity research has increased dramatically in recent years (Brown et al, 2022; Hadani et al, 2017; Lawton et al, 2013). In addition, nonmarket activity in international business research has highlighted the importance of foreign firms engaging in the political process when competing in cross‐border markets (Brown et al, 2022; Sun et al, 2021). Despite this, the majority of this research has focused on traditional multinational firms, and little is known about the EMNCs' nonmarket strategy, particularly lobbying activities in the host developed market While several studies have investigated EMNCs' political connections in their home country (e.g., Mariotti & Marzano, 2019; Schweizer et al, 2019), our work furthers the sparsely examined literature on the nonmarket activity of EMNCs in the host, developed market.…”

“…CPA influences government institutions (Brown et al, 2022; Lawton et al, 2013) and the policymaking process (Hillman et al, 1999). We see firms use CPA in response to government interaction in that as regulation within an industry increases in intensity, firm CPA increases in response (Brown et al, 2020).…”

Who obtains political exemptions? An attention-based analysis of steel tariff exclusion requests

“…Corporate political activity (CPA) essentially encapsulates companies' efforts to influence government decisions to minimize regulatory hindrance or to reap rent seeking benefits from the government (Brown et al, 2022;Hillman et al, 2004;Lawton et al, 2013). Past research shows that increasing regulatory intensity leads to a firm response of increased CPA (Brown et al, 2020) 8 .…”

Political connections of top entrepreneurs: World experience and specificity of Russia

“…В странах с развитыми рынками деятельность представителей крупного бизнеса по накоплению и использованию политических связей как особого рода ресурса рассматривается через призму концепций корпоративных политических связей (Preuss and Königsgruber, 2021), корпоративной политической активности (Brown et al, 2022), стратегического политического менеджмента (Oliver and Holzinger, 2008). Суть данных концепций заключается в том, чтобы показать, как фирмы из частного сектора стремятся максимизировать экономические выгоды, находясь в существующей политической среде.…”