Shedding Light on the Dark Side of Firm Lobbying: A Customer Perspective

Vadakkepatt, Gautham; Arora, Sandeep; Martin, Kelly D.; Paharia, Neeru

doi:10.1177/00222429211023040

Cited by 24 publications

(11 citation statements)

References 94 publications

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“…In contrast, we extend the ABV to study marketing strategy phenomena in general, and a crucial demand-side stakeholdercustomers-in particular. This aligns with newer research (e.g., Vadakkepatt et al 2021) that aligns this theory with customer outcomes. We contribute work on the marketing-finance interface.…”

Section: Theoretical Contributionssupporting

confidence: 74%

Despite Efficiencies, Mergers and Acquisitions Reduce Firm Value by Hurting Customer Satisfaction

Umashankar¹,

Bahadir²,

Bharadwaj³

2021

Journal of Marketing

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Most researchers focus on the effect of mergers and acquisitions (M&As) on investor returns and overlook customer reactions, despite the fact that customers are directly impacted by these corporate transformations. Others suggest that in M&A contexts, a dual emphasis of customer satisfaction and firm efficiency is both likely and beneficial. In contrast, the authors demonstrate that M&As not only do not yield a dual emphasis but also cause a decline in customer satisfaction to the extent that it eclipses any gain in firm value from an increase in firm efficiency. A quasi-experimental difference-in-differences analysis and an instrumental variable panel regression provide robust evidence for the dark side of M&As for customers. The authors use the attention-based view of the firm to demonstrate that post-M&A customer dissatisfaction occurs because of a shift in executive attention away from customers and toward financial issues. In line with the related upper echelons theory, they find that marketing representation on firms’ board of directors helps maintain executive attention on customers, which mitigates the dysfunctional effect of M&As on customer satisfaction. This research identifies a negative M&A-customer satisfaction relationship and highlights executive attention to customer issues and marketing leadership as factors that mitigate this negative relationship.

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Section: Theoretical Contributionssupporting

confidence: 74%

Despite Efficiencies, Mergers and Acquisitions Reduce Firm Value by Hurting Customer Satisfaction

Umashankar¹,

Bahadir²,

Bharadwaj³

2021

Journal of Marketing

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“…For example, a firm's lobbying efforts for relaxing emission regulations may affect its brand reputation leading to a decrease in sales. Studies have found that increased spending on lobbying negatively affects customer satisfaction (Vadakkepatt et al, 2021). Therefore, future research should investigate the unintended consequences of political actions applied to supply chain management.…”

Section: Unintended Outcomes Of Political Actionsmentioning

confidence: 99%

A theoretical model on how firms can leverage political resources to align with supply chain strategy for competitive advantage

Grover

Dresner

2022

J Supply Chain Manag

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The success of a firm's supply chain strategy depends on resources in the political environment and the supply network in which it operates. If the political environment is not conducive to a firm's supply chain strategy, a firm can either change its supply chain strategy or seek a political environment that is more favorable to its supply chain. This paper examines this second alternative. The structure-conduct-performance (SCP) paradigm and the competitive dynamics literature are used to explore the relationships between political actions that leverage supply network resources, supply chain strategies, and firm performance. We extend a well-known typology of political actions from the strategic management literature and suggest that beyond influencing or complying with the political environment, firms may choose to moderate the political environment (circumvent or submit) or stay neutral (free ride). An integrated model is developed to explore the relationships between political actions and supply chain strategy, along with a series of propositions outlining how political actions can facilitate supply chain risk management strategies. Finally, suggestions are provided for future research.

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“…In our empirical case, and as also evident from the literature and media, brands’ sociopolitical activism and issues are concentrated mostly in the United States (Branicki et al 2021; Hambrick and Wowak 2021; Yang, Saffer, and Li 2020). U.S. firms invest substantially in lobbying efforts in the form of corporate political advocacy (Vadakkepatt et al 2022), and to fill the void in U.S. citizens’ trust in the government, firms take a stance in leadership to align their brands with social causes (Key et al 2021). Thus, the network of U.S. brands and CMOs will expect sociopolitical activism communication more than the network of non-U.S. brands and CMOs, resulting in the latter being less intrigued by and engaged with sociopolitical activism communication.…”

Section: Hypothesis Developmentmentioning

confidence: 99%

Impact of Global Brand Chief Marketing Officers’ Corporate Social Responsibility and Sociopolitical Activism Communication on Twitter

Özturan¹,

Grinstein²

2022

Journal of International Marketing

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Chief marketing officers (CMOs) engage with their stakeholders on social media platforms with the intention to create a digital impact. CMO communication on societal issues is understudied despite heightened global attention to brands’ social practices. This poses three research questions: (1) How central is corporate social responsibility (CSR) and sociopolitical activism in the communication of global brands’ CMOs? (2) Does CMOs’ communication about CSR or sociopolitical activism have a digital impact? and (3) How do brand origin (i.e., geographic location of headquarters [HQ]) and CMO nationality (U.S. vs. non-U.S.) moderate the CSR/sociopolitical activism−digital communication impact? Drawing on expectancy violation theory, this research (Ntweets = 17,468 over NCMOs=81) finds that CMOs rarely publish CSR or sociopolitical activism communication on Twitter (5.3% and 3.2%) and demonstrates a higher digital impact of retweets for CSR and a lower impact for sociopolitical activism tweets than regular communication. Furthermore, non-U.S. HQ and CMO nationality strengthen the positive effect of CSR communication and weaken the negative effect of sociopolitical activism communication.

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Shedding Light on the Dark Side of Firm Lobbying: A Customer Perspective

Cited by 24 publications

References 94 publications

Despite Efficiencies, Mergers and Acquisitions Reduce Firm Value by Hurting Customer Satisfaction

Despite Efficiencies, Mergers and Acquisitions Reduce Firm Value by Hurting Customer Satisfaction

A theoretical model on how firms can leverage political resources to align with supply chain strategy for competitive advantage

Impact of Global Brand Chief Marketing Officers’ Corporate Social Responsibility and Sociopolitical Activism Communication on Twitter

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