IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v190y2025ics0148296325000578.html
   My bibliography  Save this article

Economic or Political Outcomes: Corporate Political Activity in a Populist Setting

Author

Listed:
  • Haq, Hammad ul
  • Kuiken, Andrea

Abstract

Research on corporate political activity has traditionally emphasized how businesses leverage economic outcomes, such as job creation and tax contributions, to influence policy decisions vis-à-vis the government. However, with the surge of populism in liberal democracies, we argue that businesses can no longer rely solely on economic outcomes. Through a qualitative analysis of information presented by the automotive and fishery sectors during Brexit negotiations, we find that businesses opposing populist policies highlight the economic consequences of proposed policies. These businesses aim to encourage populist governments to act responsibly, urging them to heed the concerns of influential companies and prioritize economic stability. In contrast, our contribution to existing research reveals that businesses supporting populist policies prioritize political outcomes, for example, by linking policy proposals to electoral success. This focus on political outcomes is unique to populist settings, where populist governments are particularly responsive to public sentiment.

Suggested Citation

  • Haq, Hammad ul & Kuiken, Andrea, 2025. "Economic or Political Outcomes: Corporate Political Activity in a Populist Setting," Journal of Business Research, Elsevier, vol. 190(C).
    • Handle: RePEc:eee:jbrese:v:190:y:2025:i:c:s0148296325000578
    DOI: 10.1016/j.jbusres.2025.115234
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296325000578
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2025.115234?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Strobl, Martin & Sáenz de Viteri, Andrea & Rode, Martin & Bjørnskov, Christian, 2023. "Populism and inequality: Does reality match the populist rhetoric?," Journal of Economic Behavior & Organization, Elsevier, vol. 207(C), pages 1-17.
    2. Martin Gregor, 2011. "Corporate lobbying: A review of the recent literature," Working Papers IES 2011/32, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Nov 2011.
    3. Dani Rodrik, 2018. "Populism and the economics of globalization," Journal of International Business Policy, Palgrave Macmillan, vol. 1(1), pages 12-33, June.
    4. Magnus Feldmann & Glenn Morgan, 2022. "Business elites and populism: understanding business responses," New Political Economy, Taylor & Francis Journals, vol. 27(2), pages 347-359, March.
    5. Dorottya Sallai & Gerhard Schnyder & Daniel Kinderman & Andreas Nölke, 2024. "The antecedents of MNC political risk and uncertainty under right-wing populist governments," Journal of International Business Policy, Palgrave Macmillan, vol. 7(1), pages 41-63, March.
    6. André Mach & Thomas David & Stéphanie Ginalski & Felix Bühlmann, 2021. "From Quiet to Noisy Politics: Transformations of Swiss Business Elites’ Power," Politics & Society, , vol. 49(1), pages 17-41, March.
    7. Campos, Nauro F. & Coricelli, Fabrizio & Moretti, Luigi, 2019. "Institutional integration and economic growth in Europe," Journal of Monetary Economics, Elsevier, vol. 103(C), pages 88-104.
    8. Dornbusch, Rudiger & Edwards, Sebastián, 1990. "La macroeconomía del populismo en la América Latina," El Trimestre Económico, Fondo de Cultura Económica, vol. 57(225), pages 121-162, enero-mar.
    9. Robert A. Huber & Christian H. Schimpf, 2017. "On the Distinct Effects of Left-Wing and Right-Wing Populism on Democratic Quality," Politics and Governance, Cogitatio Press, vol. 5(4), pages 146-165.
    10. Robert A. Huber & Christian H. Schimpf, 2017. "On the Distinct Effects of Left-Wing and Right-Wing Populism on Democratic Quality," Politics and Governance, Cogitatio Press, vol. 5(4), pages 146-165.
    11. Christopher A. Hartwell & Timothy M. Devinney, 2021. "Adapting to Populism’s (Current and Future) Moment: Political Uncertainty and Business Strategy," Springer Books, in: Seung Ho Park & Maria Alejandra Gonzalez-Perez & Dinorá Eliete Floriani (ed.), The Palgrave Handbook of Corporate Sustainability in the Digital Era, edition 1, chapter 0, pages 237-258, Springer.
    12. Martin Rode & Julio Revuelta, 2015. "The Wild Bunch! An empirical note on populism and economic institutions," Economics of Governance, Springer, vol. 16(1), pages 73-96, February.
    13. Sarah L. de Lange, 2012. "New Alliances: Why Mainstream Parties Govern with Radical Right-Wing Populist Parties," Political Studies, Political Studies Association, vol. 60(4), pages 899-918, December.
    14. Pepper D. Culpepper, 2021. "Quiet Politics in Tumultuous Times: Business Power, Populism, and Democracy," Politics & Society, , vol. 49(1), pages 133-143, March.
    15. Thomas Lawton & Steven Mcguire & Tazeeb Rajwani, 2013. "Corporate Political Activity : A Literature Review and Research Agenda," Post-Print hal-02312913, HAL.
    16. Magnus Feldmann & Glenn Morgan, 2021. "Brexit and British Business Elites: Business Power and Noisy Politics," Politics & Society, , vol. 49(1), pages 107-131, March.
    17. Michael A. Witt, 2019. "De-globalization: Theories, predictions, and opportunities for international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(7), pages 1053-1077, September.
    18. Stöckl, Sebastian & Rode, Martin, 2021. "The price of populism: Financial market outcomes of populist electoral success," Journal of Economic Behavior & Organization, Elsevier, vol. 189(C), pages 51-83.
    19. Daniel J. Blake & Stanislav Markus & Julio Martinez‐Suarez, 2024. "Populist Syndrome and Nonmarket Strategy," Journal of Management Studies, Wiley Blackwell, vol. 61(2), pages 525-560, March.
    20. Glenn Morgan & Christian Lyhne Ibsen, 2021. "Quiet Politics and the Power of Business: New Perspectives in an Era of Noisy Politics," Politics & Society, , vol. 49(1), pages 3-16, March.
    21. Nyberg, Daniel & Murray, John, 2023. "Corporate populism: How corporations construct and represent ‘the people’ in political contestations," Journal of Business Research, Elsevier, vol. 162(C).
    22. Dornbusch, Rudiger & Edwards, Sebastian, 1990. "Macroeconomic populism," Journal of Development Economics, Elsevier, vol. 32(2), pages 247-277, April.
    23. Yadong Luo, 2001. "Toward a Cooperative View of MNC-Host Government Relations: Building Blocks and Performance Implications," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 32(3), pages 401-419, September.
    24. Potters, Jan & van Winden, Frans, 1992. "Lobbying and Asymmetric Information," Public Choice, Springer, vol. 74(3), pages 269-292, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Matevž (Matt) Rašković & Katalin Takacs Haynes & Anastas Vangeli, 2024. "The emergence of populism as an institution and its recursive mechanisms: A socio-cognitive theory perspective," Journal of International Business Policy, Palgrave Macmillan, vol. 7(1), pages 19-40, March.
    2. Hartwell, Christopher A. & Devinney, Timothy M., 2024. "The demands of populism on business and the creation of “corporate political obligations”," International Business Review, Elsevier, vol. 33(2).
    3. Daniel L. Bennett & Christopher Boudreaux & Boris Nikolaev, 2023. "Populist discourse and entrepreneurship: The role of political ideology and institutions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(1), pages 151-181, February.
    4. Strobl, Martin & Sáenz de Viteri, Andrea & Rode, Martin & Bjørnskov, Christian, 2023. "Populism and inequality: Does reality match the populist rhetoric?," Journal of Economic Behavior & Organization, Elsevier, vol. 207(C), pages 1-17.
    5. Benczes, István & Szabó, Krisztina, 2023. "Társadalmi törésvonalak és gazdasági (ir)racionalitások. A közgazdaságtan szerepe és helye a populizmus kutatásában [Social cleavages and economic (ir)rationalities: The role of economics in populi," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(1), pages 23-54.
    6. Petar Stankov, 2018. "The Political Economy of Populism: An Empirical Investigation," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 60(2), pages 230-253, June.
    7. Cachanosky, Nicolas & Bastos, João Pedro & Padilla, Alexandre & Hernández, Karla C., 2025. "The institutional impact of left-leaning populism in Latin America," European Journal of Political Economy, Elsevier, vol. 86(C).
    8. Maximiliano Marzetti & Rok Spruk, 2023. "Long-Term Economic Effects of Populist Legal Reforms: Evidence from Argentina," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 65(1), pages 60-95, March.
    9. Daniel J. Blake & Stanislav Markus & Julio Martinez‐Suarez, 2024. "Populist Syndrome and Nonmarket Strategy," Journal of Management Studies, Wiley Blackwell, vol. 61(2), pages 525-560, March.
    10. Pan, Wei-Fong, 2023. "Household debt in the times of populism," Journal of Economic Behavior & Organization, Elsevier, vol. 205(C), pages 202-215.
    11. Nicolás Cachanosky & Alexandre Padilla, 2020. "A panel data analysis of Latin American populism," Constitutional Political Economy, Springer, vol. 31(3), pages 329-343, September.
    12. Shlomo Yedidia Tarba & Mohammad Faisal Ahammad & Ilan Alon & Jeremy Clegg & Ilan Vertinsky, 2024. "Protectionism in the International Business: Editorial to the Focused Issue," Management International Review, Springer, vol. 64(2), pages 337-341, April.
    13. Andrei Panibratov & Ramsés A. Sánchez Herrera & Alvar Castello Esquerdo & Daria Klishevich, 2023. "Surviving populism: A corporate political activity approach in Mexico," Journal of International Business Policy, Palgrave Macmillan, vol. 6(2), pages 182-200, June.
    14. Christopher A. Hartwell & Barclay James & Thomas Lindner & Jakob Müllner & Paul M. Vaaler, 2024. "Populist politics and international business policy: problems, practices, and prescriptions for MNEs," Journal of International Business Policy, Palgrave Macmillan, vol. 7(1), pages 12-18, March.
    15. Iiris Saittakari & Tiina Ritvala & Rebecca Piekkari & Perttu Kähäri & Sami Moisio & Tomas Hanell & Sjoerd Beugelsdijk, 2023. "A review of location, politics, and the multinational corporation: Bringing political geography into international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(6), pages 969-995, August.
    16. Nicolás Cachanosky & Edward J. Lopez, 2020. "Rediscovering Buchanan’s rediscovery: non-market exchange versus antiseptic allocation," Public Choice, Springer, vol. 183(3), pages 461-477, June.
    17. Giray Gozgor, 2020. "The Role of Economic Uncertainty in Rising Populism in the EU," CESifo Working Paper Series 8499, CESifo.
    18. Carsten Hefeker & Tobias Boos & Ulrich Brand & Martin T. Braml & Barbara Fritz & Ingrid Wehr & Angelica Dominguez-Cardoza & Christoph Trebesch, 2019. "Vom Hoffnungsträger zum Problemfall: Lateinamerika verliert den Anschluss – was sind die Ursachen?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 72(24), pages 03-23, December.
    19. Giray Gozgor, 2022. "The role of economic uncertainty in the rise of EU populism," Public Choice, Springer, vol. 190(1), pages 229-246, January.
    20. Manuel Funke & Moritz Schularick & Christoph Trebesch, 2023. "Populist Leaders and the Economy," American Economic Review, American Economic Association, vol. 113(12), pages 3249-3288, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:190:y:2025:i:c:s0148296325000578. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.