Corporate political strategy and liability of foreignness: Similarities and differences between local and foreign firms in the South African Health Sector

Wöcke, Albert; Moodley, Terence

doi:10.1016/j.ibusrev.2015.01.002

Cited by 24 publications

(13 citation statements)

References 46 publications

(92 reference statements)

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“…However, the nature and role of CPC are subject to important contingencies that are not yet well understood in the literature (Sun et al, ). In other words, the value of CPC and the costs associated with creating CPC are contingent on, for example, political systems, regulatory institutions (Holburn & van den Bergh, ; Mbalyohere, Lawton, Boojihawon, & Viney, ; Zheng, Singh, & Chung, ), and industry characteristics (Ramamurti, ; Wöcke & Moodley, ). This is a particular concern for global strategy research, as multinational enterprises (MNEs) potentially interact with political agents in multiple locations, and it is not clear to what extend learnings from one context are transferable to other contexts.…”

Section: Introductionmentioning

confidence: 99%

Corporate political connections in global strategy

Cui

et al. 2018

Global Strategy Journal

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Research Summary: The role of corporate political connections (CPC) in global strategy has been examined in a variety of institutional contexts and analyzed from different theoretical perspectives. This literature, along with the articles in this special issue, demonstrate the importance of contextualization in understanding the motivations, processes, and outcomes of firms developing and utilizing CPC in global strategy. We argue that context‐specific aspects of CPC, such as the political system in which the firm is operating, need to be incorporated more systematically to advance theory development globally. Future studies on CPC can advance this agenda through cross‐country comparative research, deeper engagement with political science literature, linking CPC with other nonmarket strategies, and configurational analysis of the multidimensional context of CPC. Managerial Summary: Multinational companies not only compete in a market environment, they engage with political actors in both their home and host societies. This special issue brings together research that explores how companies use their corporate political connections (CPC) to achieve firm objectives. Each study takes a different approach to studying the phenomenon, informed by the national context of their empirical data. Together, these studies highlight the importance of CPC around the world. However, the variation in research approaches also highlights that the “how and why” of companies' development and utilization of CPC vary across cultures and political systems. In consequence, the development of managerial recommendations always needs to carefully consider the pertinent political context of the available empirical evidence.

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Section: Introductionmentioning

confidence: 99%

Corporate political connections in global strategy

Cui

et al. 2018

Global Strategy Journal

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“…Numerous studies show that large firms are more politically active and are also more likely to act alone in political markets (e.g. Hillman et al 2004;Weymouth 2012;Wocke and Moodley 2015). This is because they have the resources to engage politicians and governments (Hillman and Hitt 1999).…”

Section: Corporate Political Activitymentioning

confidence: 99%

“…However, CPA research has now expanded beyond earlier remits into Asia, Africa and other regions characterised by institutional fragility (e.g. Puck et al 2013;Nell et al 2015;White et al 2015;Wocke and Moodley 2015;Mbalyohere et al 2017). In these developing contexts, normative ethical guidelines barely exist in the private sector, so how do firms judge ethicality?…”

Section: Introductionmentioning

confidence: 99%

Responsible Firm Behaviour in Political Markets: Judging the Ethicality of Corporate Political Activity in Weak Institutional Environments

Liedong

2020

J Bus Ethics

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While support for corporate political activity (CPA) is well echoed in the literature, little has been done to empirically examine its ethicality. Moreover, existing ethical CPA frameworks assume normative and rational leanings that are insufficient to provide a comprehensive account of CPA ethicality. Utilizing the Ghanaian context, adopting a multiple case study design involving 28 Directors from 22 firms, and employing a grounded theory approach, I explore how the ethicality of CPA is determined in weak institutional environments. The findings reveal that business executives evaluate ethics at three levels (i.e. context, organizational and strategy) using three principles (i.e. utilitarianism, justice and institutions). Leveraging this knowledge, I present an eclectic framework that bridges the long-standing gap between normative ethical prescriptions and lived ethical realities. In doing so, I move away from abstraction to give "voice" to the actors involved in CPA. I also present a model that shows how the ethical judgement process is influenced by managerial intuition and interactive personal and organizational experiences. This article has important theoretical and practical implications for ethical business-government relations in developing countries.

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“…Longevity can enable firms to develop important relationships with stakeholders (Acquaah 2007), build strong constituencies (Keim and Baysinger 1988) and intensify their political ties. Following previous studies (Hillman 2003;Acquaah 2007;Wocke and Moodley 2015), we measured Firm Age as the number of years the firm has been operational in Ghana. Firm Size is an antecedent of CPA (Hillman et al 2004;Schuler et al 2002a) and a proxy for resource endowment (Boddewyn and Brewer 1994;Hillman and Hitt 1999).…”

Section: Moderator Variable/control Variablesmentioning

confidence: 99%

Investment Climate Constraints as Determinants of Political Tie Intensity in Emerging Countries: Evidence from Foreign Firms in Ghana

Liedong

Frynas

2018

Manag Int Rev

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Foreign firms in emerging countries face various institutionally-driven challenges. Nonmarket strategy scholars argue that these challenges incite corporate political activity. Consequently, researchers have explored the influence of institutional factors on the choice and extent of political strategies. However, not much is known about how investment climate constraints affect the political ties of foreign firms in contexts other than US, Europe and Asia. Drawing on institutional theory, we propose that firms' exposure to administrative and control constraints as well as the presence of public affairs (PA) functions will lead to political tie intensification. We test our propositions using data from foreign firms operating in Ghana, and find that whereas control constraints strengthen political ties, administrative constraints weaken these ties. The findings also suggest that PA functions and political ties can be substitutes, not complements, depending on the institutional contingencies. Altogether, our study enhances knowledge and understanding of how institutional environments and organizational structures affect the political behaviour of foreign firms in emerging countries.

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Corporate political strategy and liability of foreignness: Similarities and differences between local and foreign firms in the South African Health Sector

Cited by 24 publications

References 46 publications

Corporate political connections in global strategy

Corporate political connections in global strategy

Responsible Firm Behaviour in Political Markets: Judging the Ethicality of Corporate Political Activity in Weak Institutional Environments

Investment Climate Constraints as Determinants of Political Tie Intensity in Emerging Countries: Evidence from Foreign Firms in Ghana

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