The Attractiveness of Political Markets: Implications for Firm Strategy

Bonardi, Jean-Philippe; Hillman, Amy J.; Keim, Gerald D.

doi:10.5465/amr.2005.16387895

Cited by 385 publications

(353 citation statements)

References 35 publications

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“…With political activities such as lobbying, political donations, and testimony, firms seek to reduce uncertainty, decrease transaction costs, and create business opportunities (Bonardi et al 2006, Hillman et al 1999, Lord 2000. Research on corporate political activities in the West has generally supported the notion that the greater the role of the government in a firm's immediate environment, the more likely the firm is to engage in political strategies (Baron 1995, Bonardi et al 2005, Schuler and Rehbein 1997, Schuler et al 2002. For example, in the United States, firms in industries represented by a congressional caucus are more likely to use lobbying and PAC contributions (Schuler et al 2002).…”

Section: Csr Reporting As a Political Strategy In Chinamentioning

confidence: 99%

“…The implications and antecedents of firms' political strategies have emerged as important areas of research in organizational theory (Bonardi et al 2005, Hillman et al 2004. Governments control critical resources that shape firms' competitive positions, for example, through regulations affecting an industry or through tax policies favoring certain regions (Baron 1995, Schuler andRehbein 1997).…”

Section: Introductionmentioning

confidence: 99%

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Corporate Social Responsibility Reporting in China: Symbol or Substance?

Marquis¹,

Qian

2014

Organization Science

1,133

1,203

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T his study focuses on how and why firms strategically respond to government signals on appropriate corporate activity.We integrate institutional theory with research on corporate political strategy to develop a political dependence model that explains (a) how different types of dependency on the government lead firms to issue corporate social responsibility (CSR) reports and (b) how the risk of governmental monitoring affects the extent to which CSR reports are symbolic or substantive. First, we examine how firm characteristics reflecting dependence on the government-including private versus state ownership, executives serving on political councils, political legacy, and financial resources-affect the likelihood of firms issuing CSR reports. Second, we focus on the symbolic nature of CSR reporting and how variance in the risk of government monitoring through channels such as bureaucratic embeddedness and regional government institutional development influences the extent to which CSR communications are symbolically decoupled from substantive CSR activities. Our database includes all CSR reports issued by the approximately 1,600 publicly listed Chinese firms between 2006 and 2009. Our hypotheses are generally supported. The political perspective we develop contributes to organizational theory by showing that (a) government signaling is an important mechanism of political influence, (b) different types of dependency on the government expose firms to different types of legitimacy pressure, and (c) firms face a decoupling risk that makes them more likely to enact substantive CSR actions in situations in which they are likely to be monitored.

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Section: Csr Reporting As a Political Strategy In Chinamentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Corporate Social Responsibility Reporting in China: Symbol or Substance?

Marquis¹,

Qian

2014

Organization Science

1,133

1,203

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“…Telecommunications firms often deploy regulatory strategies to shape the political environment (Bonardi et al 2005). We used a five-point scale to measure the extent to which the firm depends on regulation (1 for "not at all," 5 for "to a very large extent").…”

Section: Randd and Advertising Investmentsmentioning

confidence: 99%

Selection Capability: How Capability Gaps and Internal Social Frictions Affect Internal and External Strategic Renewal

Capron

Mitchell

2009

Organization Science

325

243

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T he dynamic capabilities literature suggests that firms need to use both internal development and external sourcing to thrive over time, but we have a limited understanding of the conditions that best suit different sourcing choices. This study examines how constraints that arise from firms' existing stocks of capabilities and from their internal social contexts shape their choices of capability-sourcing modes and, in turn, their ability to obtain new capabilities. Thus, the research focuses on an underemphasized form of dynamic capability: the ability to select appropriate modes of capability sourcing. We test the arguments with a survey and longitudinal survival study of the international telecommunications industry. We find intriguing variations in the way that firms' selection capability influences their ability to renew their capabilities and, ultimately, to survive.

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“…CPA tactics are further categorized in terms of individual or collective actions (Hillman et al, 2004;Hillman and Hitt, 1999;Olson, 1965;Yoffie, 1987;Bonardi et al, 2005). Industry associations such as the AAM and Global Automakers (GA) and other lobbying coalitions are collective groups that represent the interests of their members by engaging in political strategies; in this paper we refer to such groups as coalitions.…”

Section: Coalitionsmentioning

confidence: 99%