“…These laws, policies, and regulations constitute a firm's political environment (Bain, 1956; Caves, 1964; Mason, 1939). The political environment may be favorable for a firm; that is, it may be advantageous to the firm's strategy and operations, or unfavorable, that is, less than appropriate for the success of the firm's strategy or operations at a given time (Gupta, 2004; Hughes, 2021; Jeppesen, 2005; Zinn & Goldsby, 2019). Moreover, the political environment is dynamic, with unfavorable short‐term environments becoming favorable in the longer run (and vice versa).…”