Lobbying as a potent political marketing tool for firm performance: A closer look

Abstract

This study endeavors to enhance political marketing literature about the impact of lobbying on firm performance. Our sample is composed of 140 U.S. firms and spans the years 2007–2014 to encompass the 2007–2009 recession and the subsequent recovery period. Our findings indicate that lobbying expenses positively contribute to firm performance. Also, government contracts in both ways, dollar amount and number of government contracts, act as mediators between lobbying expenses and firm performance. In addition, organizational slack moderates the relationship between lobbying expenses and government contracts. The managerial implications suggest that lobbying expenses can be leveraged as a potent tool for firm performance. Firms with larger lobbying efforts acquired both, higher dollar amounts and a greater number of government contracts.

Necessary condition analysis in marketing research

“…For example, consumer learning is posited as a necessary but not sufficient condition of persuasion (Yeh, Jewell, & Hu, 2013). Also, lobbying appears being a necessary but not sufficient condition for obtaining preferential treatment (Anderson, Martin, & Lee, 2018) or maintaining communication is necessary for firms to articulate and transfer knowledge (Park, Vertinsky, & Lee, 2012). NCA could be applied for theory testing in the mentioned marketing communication contexts.…”

Hospital Lobbying and Performance

“…Lobbying has both negative and positive connotations. Some feel that business organizations abuse lobbying for their selfish interests which leads to corruption, while others think that lobbying is necessary because it prevents potentially harmful policies by providing important information to policymakers (Anderson, Martin, and Lee 2018). To regulate lobbying and increase its accountability, the Lobbying Disclosure Act of 1995 became effective on January 1, 1996.…”