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How do firms compete in the non-market? The process of political capability building

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  • Brown, Richard S.

Abstract

This paper contributes to both corporate political activity (CPA) research and capabilities theory research by offering models that better describe the process that managers undertake to nurture a political capability. This is done through the interplay of four factors inherent in political actions, namely (i) corporate structure, (ii) firm-government linkages, (iii) political access and (iv) public policy pressure. Additionally, recognizing that political capability attainment is not a binary endeavor, I offer a political capability continuum to better categorize the magnitude by which differing firms allocate resources toward molding public policy. This paper adds to the scant literature on management-focused CPA research that integrates the resource-based view (RBV) of the firm and political action research.

Suggested Citation

  • Brown, Richard S., 2016. "How do firms compete in the non-market? The process of political capability building," Business and Politics, Cambridge University Press, vol. 18(3), pages 263-295, October.
  • Handle: RePEc:cup:buspol:v:18:y:2016:i:03:p:263-295_00
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    Cited by:

    1. Tahiru Azaaviele Liedong, 2022. "The Liability of Tribe in Corporate Political Activity: Ethical Implications for Political Contestability," Journal of Business Ethics, Springer, vol. 181(3), pages 623-644, December.
    2. Greiner, Michael & Kim, Jaemin & Cordon Thor, Jennifer, 2023. "Narcissistic CEOs and their corporate political activity," Journal of Business Research, Elsevier, vol. 163(C).
    3. Liedong, Tahiru Azaaviele & Rajwani, Tazeeb & Lawton, Thomas C., 2020. "Information and nonmarket strategy: Conceptualizing the interrelationship between big data and corporate political activity," Technological Forecasting and Social Change, Elsevier, vol. 157(C).
    4. Yaoqin Li & Xixiong Xu & Weiyu Gan, 2018. "Political extraction and corporate cash holdings in China," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 32(2), pages 76-94, November.
    5. Tahiru Azaaviele Liedong, 2021. "Responsible Firm Behaviour in Political Markets: Judging the Ethicality of Corporate Political Activity in Weak Institutional Environments," Journal of Business Ethics, Springer, vol. 172(2), pages 325-345, August.

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