Integrated Strategy: Market and Nonmarket Components

Baron, David P.

doi:10.2307/41165788

Cited by 822 publications

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“…The extent to which a privately controlled firm uses political connections to buffer or bind differs across industries. As Baron (1995) suggests, the importance of a firm's political strategy is positively associated with the degree of government control over the opportunities in the industry where the firm resides. The above rationale is applicable to the relationship between political connections and corporate charitable donation in state-monopolized industries in China.…”

Section: Ascribed and Achieved Political Connectionsmentioning

confidence: 99%

Do Political Connections Buffer Firms from or Bind Firms to the Government? A Study of Corporate Charitable Donations of Chinese Firms

Zhang

Marquis

Qiao

2016

Organization Science

318

348

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D o political connections buffer firms from or bind firms to the government? To examine this theoretical puzzle, we distinguish two types of managerial political connections, ascribed and achieved, and theorize that these different types of ties either buffer firms from or bind firms to government demands. Furthermore, we propose that these effects are contingent on both industrial and regional institutional conditions. We test our framework with a unique panel data set of privately controlled listed firms' charitable donations in China from 2001 to 2012. We find that firms whose executives have ascribed bureaucratic connections are more likely to use their connections as a buffer from governmental donation pressure, particularly in competitive industries and less market-oriented regions, whereas in state-monopolized industries this buffering effect is reduced. In contrast, achieved political connections are more likely to serve a binding function that facilitates donation, particularly in state-monopolized industries and more market-oriented regions, but in less marketoriented regions, they buffer firms from the pressure to donate. Our research contributes to the literatures on the effects of political connections, the institutional contingencies of political connections, and the relationship between corporate social responsibility (CSR) and corporate political activities (CPA).Keywords: political connections; corporate charitable donation; resource dependence; institutional environment History: Published online in Articles in Advance September 29, 2016. IntroductionAs institutional linkages that span firms and governmental authorities, firms' political connections are a key component of corporate political strategy in both developed and emerging economies (Hillman 2005, Hillman et al. 1999, Peng and Luo 2000. However, the effects of political connections on firm behavior and outcomes are not clear (Sun et al. 2012). Many studies focus on the benefits from such linkages and indicate that political connections have a "buffering" effect; that is, they provide a buffer for the organization from competitive and regulatory forces via access to information, influence, and legitimacy (Hillman 2005, Hillman et al. 1999, Lester et al. 2008, Peng and Luo 2000. Research has shown that firms can employ their political capital to shield themselves from unwanted political interference, unfavorable regulations, and/or various forms of government rent expropriation (Mellahi et al. 2016). Even in the United States, political connections have been shown to help firms when they deal with regulators (Correia 2014, Yu andYu 2011). In emerging markets, such a buffering effect is seen as an effective mechanism to protect firms from government rent-seeking behavior (Chen et al. 2011, Dieleman andBoddewyn 2012).In contrast, other studies consider these connections from the perspective of the government and emphasize the necessary costs of such linkages for the firm. From this perspective, political connections have a "binding" effect, ...

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Section: Ascribed and Achieved Political Connectionsmentioning

confidence: 99%

Do Political Connections Buffer Firms from or Bind Firms to the Government? A Study of Corporate Charitable Donations of Chinese Firms

Zhang

Marquis

Qiao

2016

Organization Science

318

348

View full text Add to dashboard Cite

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“…Tais dados corroboram as afirmações de Baron (1995), no sentido de que o desempenho das estratégias de mercado pode ser afetado pela atuação de componentes externos não mercadológicos, portanto, havendo a necessidade de desenvolver estratégias integradas. Outro exemplo é o do perfil de doações a campanhas entre as esferas governamentais, que é diverso, considerando diferentes grupos de empresas, como sublinha o autor do estudo que compartilha dados com esta pesquisa (Caldeira, 2012 Destaca-se que mais de uma estratégia pode ser usada ao mesmo tempo e de modo complementar.…”

Section: Apresentação E Análise Dos Resultados Etapas Do Processo Estunclassified

“…As possibilidades de estratégias são inúmeras, algumas acontecem fora do controle da firma, algumas são coletivas (e carregam os problemas de coordenação e freeriding típicos deste tipo de ação), existem papéis que são mutáveis ao longo do processo. Além disso, estas são ações de não mercado (Baron, 1995), e, portanto, o gestor não tem bases de preços de mercado para avaliar seus investimentos. Esta característica do processo de estratégias políticas também afeta as questões de utilização de processos externos à firma e das ações coletivas.…”

Section: Discussionunclassified

“…Tradicionalmente, a literatura em estratégia foca a organização e suas estratégias de mercado (Baron, 1995). Entretanto, o desempenho das empresas pode ser afetado por componentes externos não mercadológicos -notadamente o governo e a definição das regras institucionais e legais e o sistema judiciário.…”

Section: Referencial Teórico Estratégias Políticasunclassified

“…2, pp. 22-40, Dezembro 2014 www.anpad.org.br/rac desenvolver estratégias não mercadológicas que devem ser integradas às estratégias mercadológicas, conforme afirma Baron (1995). A mais usada das estratégias de não mercado é a das estratégias políticas ou Corporate Political Actions (CPA) (Getz, 1997).…”

Section: Referencial Teórico Estratégias Políticasunclassified

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Conquanto a importância das estratégias políticas para a sobrevivência e desempenho das organizações, parcos são os estudos que focam efetivamente os processos que as empresas utilizam no que concerne tais estratégias. Sob essa ótica que foi conduzido este estudo qualitativo com análise de conteúdo por categorização, para tanto, utilizando-se dados de entrevistas com tomadores de decisão sobre estratégias políticas em empresas de etanol, bem como dados secundários sobre o setor e a atuação política das empresas analisadas. Com base nos dados, este artigo sugere um modelo para o processo de formulação e execução de estratégias políticas, discutindo, em termos teóricos, as especificidades desse processo. Entre as peculiaridades do processo de formulação e execução de estratégias políticas estão volume de atividades realizadas no âmbito externo à firma, a prevalência de ações coletivas e a complexidade em apurar os resultados da implementação das estratégias políticas.

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This study investigates whether anti‐dumping statutes are effective at improving the performance of U.S. firms. As international trade grows and competitors increasingly cross national borders to enter new markets, U.S. trade law becomes a potentially important tool for managers as they consider how to create barriers for foreign competitors. The results of this study suggest that the anti‐dumping laws significantly increase returns of U.S. firms that pursue anti‐dumping protection. The average petitioner between 1980 and 1992 received a $46 million increase in market value as a result of filing an anti‐dumping petition. However, no significant change in market value was associated with preliminary or final determinations of the International Trade Commission, except when petitions received a negative determination at the final stage of the process. A negative determination at the final stage of the process resulted in a loss of market value. © 1998 John Wiley & Sons, Ltd.

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Integrated Strategy: Market and Nonmarket Components

Cited by 822 publications

References 1 publication

Do Political Connections Buffer Firms from or Bind Firms to the Government? A Study of Corporate Charitable Donations of Chinese Firms

Do Political Connections Buffer Firms from or Bind Firms to the Government? A Study of Corporate Charitable Donations of Chinese Firms

Formulação e Execução de Estratégias Políticas no Setor de Etanol: Um Modelo Processual

Creating barriers for foreign competitors: a study of the impact of anti-dumping actions on the performance of U.S. firms

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