Wining and Dining Government Officials: What Drives Political Networking in Chinese Private Ventures?

2020 ◽  
Vol 16 (5) ◽  
pp. 1084-1113
Author(s):  
Jianjun Zhang ◽  
Pei Sun ◽  
Kunyuan Qiao
Keyword(s):  
Emerging Economies ◽  
Resource Dependence ◽  
Institutional Environment ◽  
Resource Dependence Theory ◽  
Political Activity ◽  
Corporate Political Activity ◽  
Dyadic Relationship ◽  
Political Actors ◽  
Government Relations ◽  
The Government

ABSTRACTManagerial networking with political actors has long been recognized as a crucial co-option strategy to navigate the challenging institutional environment in emerging economies. However, we know much less about what drives the variation of political networking investment by private ventures. Drawing on resource dependence theory, we unpack the dyadic business-government relations and identify the key organizational and environmental factors that shape the power dependence relationships between private ventures and the government. By examining power imbalance and mutual dependence in this dyadic relationship and considering both the necessity and the capability of political networking, we develop hypotheses regarding the ways in which size-, connection-, and location-based dependencies affect firms’ political networking intensity. These hypotheses are tested through a unique survey of Chinese private ventures. Our study finds that political networking intensity (1) has an inverted U-shaped relationship with firm size, (2) is negatively associated with the presence of embedded political ties while positively associated with that of achieved political connections, and (3) is smaller when the focal firm is located in business development zones. This research bears rich implications for our understanding of corporate political activity in emerging economies from a resource dependence lens.

Corporate Politics in the Public Sphere: Corporate Citizenspeak in a Mass Media Policy Contest

2017 ◽  
Vol 59 (4) ◽  
pp. 579-611 ◽  
Author(s):  
Daniel Nyberg ◽  
John Murray
Keyword(s):  
Public Sphere ◽  
Common Good ◽  
Mining Industry ◽  
Political Activity ◽  
Corporate Political Activity ◽  
Political Actors ◽  
The Public ◽  
The Common Good ◽  
The Common ◽  
The Public Sphere

This article connects the previously isolated literatures on corporate citizenship and corporate political activity to explain how firms construct political influence in the public sphere. The public engagement of firms as political actors is explored empirically through a discursive analysis of a public debate between the mining industry and the Australian government over a proposed tax. The findings show how the mining industry acted as a corporate citizen concerned about the common good. This, in turn, legitimized corporate political activity, which undermined deliberation about the common good. The findings explain how the public sphere is refeudalized through corporate manipulation of deliberative processes via what we term corporate citizenspeak—simultaneously speaking as corporate citizens and for individual citizens. Corporate citizenspeak illustrates the duplicitous engagement of firms as political actors, claiming political legitimacy while subverting deliberative norms. This contributes to the theoretical development of corporations as political actors by explaining how corporate interests are aggregated to represent the common good and how corporate political activity is employed to dominate the public sphere. This has important implications for understanding how corporations undermine democratic principles.

scholarly journals Institutional permissiveness in the context of government-business relations

2020 ◽  
Vol 13 (5) ◽  
pp. 1073-1092
Author(s):  
André Luiz Castro de Sousa ◽  
Robson Silva Soe Rocha ◽  
Mônica Cavalcanti Sá de Abreu
Keyword(s):  
Social Relations ◽  
Institutional Environment ◽  
Industrial Area ◽  
Longitudinal Case Study ◽  
Structured Interviews ◽  
Theoretical Contribution ◽  
Government Relations ◽  
Local Actors ◽  
Anglo American ◽  
The Government

Purpose - This article explores the extent to which business–government relations permeate socially irresponsible business activities. While existing theory provides traction in explaining the strength of the pressures to conform that emanate from the institutional environment, it does not adequately explain the conditions under which businesses might exercise discretion in choosing whether or not to conform to local standards of appropriateness and how local actors organize their responses accordingly. Methodology - The empirical evidence is based on an in-depth longitudinal case study developed in an industrial district of Fortaleza, Brazil. Data were collected from three sources, including semi-structured interviews. An inductive thematic analysis of narratives was conducted to investigate the interactions between the different institutional actors and their experiences of institutional change and renegotiation. Findings - It was found that the institutionalized forms of business–government relations are fundamentally permissive and personalized, being based on meeting specific and mutually opportunistic demands. We show that institutional permissiveness can make it possible for large firms to dominate an industrial area and force the government to reduce law enforcement. We demonstrate the historical evolution of forms of the appropriation of space and natural resources. Originality - Our theoretical contribution is to the concept of institutional permissiveness. Unlike other institutional streams, we argue that the concept of the institutional void is inadequate to the task of understanding business–government relations in emerging markets. We show how an institutional configuration can emerge that sustains the power relations and resource appropriations that reproduce social relations distinct from those found in the Anglo-American institutional environment, which does not configure institutional voids.

Politicians on the Board of Directors: Do Connections Affect the Bottom Line?

2005 ◽  
Vol 31 (3) ◽  
pp. 464-481 ◽  
Author(s):  
Amy J. Hillman
Keyword(s):  
Board Of Directors ◽  
Resource Dependence ◽  
Resource Dependence Theory ◽  
Bottom Line ◽  
Dependence Theory ◽  
The Board Of Directors ◽  
Regulated Industries ◽  
The Government ◽  
The Relationship

Resource dependence theory emphasizes the importance of linking firms with external contingencies that create uncertainty and interdependence. A critical source of external interdependency and uncertainty for business is government. One way to link a firm to the government is appointing ex-politicians to the board of directors. This study compares the boards of two groups of firms—those from heavily and less regulated industries—and finds the former group has more politician directors. Firms with politicians on the board are associated with better market-based performance across both groups, although the relationship is more pronounced within heavily regulated industries.

Government-Oriented Corporate Public Relation Strategies in Transitional China

2008 ◽  
Vol 4 (3) ◽  
pp. 367-391 ◽  
Author(s):  
Yuanqiong He ◽  
Zhilong Tian
Keyword(s):  
Resource Dependence ◽  
Resource Dependence Theory ◽  
Government Policies ◽  
Public Relation ◽  
Ownership Structures ◽  
Political Propaganda ◽  
Cultural Legitimacy ◽  
Dependence Theory ◽  
The Government ◽  
Transitional China

This study proposes an initial and a revised model of government-oriented public relation (PR) strategies based on the results of two content analyses of website news regarding the PR activities of 76 firms in general and six well-known firms in China in more depth. With the perspective of resource dependence theory, this model reveals that firms in China employ six types of formal PR strategies, including visitation, philanthropy, participation, publicity, party involvement and political propaganda, to manage their dependence on government for resources. Further, the implementation of such strategies involves a four-step process: organizing PR activities with economic, social and political significance; obtaining the involvement and recognition of the government; building firms' resource, moral and cultural legitimacy in the government's eyes; and interacting with the government on the issues of firms' dependence to influence government policies relative to firms. We also explore the differences that exist among firms with different ownership structures in the use of these PR strategies, the level of government involved and the issues pursued.

The Government Relations Function in Large Firms Based in the United Kingdom: A Preliminary Study

1982 ◽  
Vol 12 (4) ◽  
pp. 513-516 ◽  
Author(s):  
Wyn Grant
Keyword(s):  
United Kingdom ◽  
Corporate Strategy ◽  
Political Environment ◽  
Large Firms ◽  
Political Actors ◽  
Government Relations ◽  
The United Kingdom ◽  
Preliminary Study ◽  
The Government

The United Kingdom's economy is relatively highly concentrated and the importance of decisions taken by very large firms for the economy as a whole encourages direct contacts between government and such firms. The scale and importance of such direct contacts has created a need within very large firms for a specialized capability to interpret the external political environment, and to relate that appreciation to the development of the firm's corporate strategy. A number of large firms in the United Kingdom have developed specialized government relations divisions in the last ten years. The titles of such divisions vary, but their most important function is the strategic co-ordination of the firm's relationships with government and other political actors.

scholarly journals Corporate political activity of the dairy industry in France: an analysis of publicly available information

2017 ◽  
Vol 20 (13) ◽  
pp. 2432-2439 ◽  
Author(s):  
Melissa Mialon ◽  
Jonathan Mialon
Keyword(s):  
Public Health ◽  
Data Collection ◽  
Dairy Industry ◽  
Dietary Guidelines ◽  
Political Activity ◽  
Trade Association ◽  
Policy Debate ◽  
Corporate Political Activity ◽  
The Government ◽  
Available Information

AbstractObjectiveIn the present study, we used a structured approach based on publicly available information to identify the corporate political activity (CPA) strategies of three major actors in the dairy industry in France.DesignWe collected publicly available information from the industry, government and other sources over a 6-month period, from March to August 2015. Data collection and analysis were informed by an existing framework for classifying the CPA of the food industry.Setting/SubjectsOur study included three major actors in the dairy industry in France: Danone, Lactalis and the Centre National Interprofessionnel de l’Economie Laitière (CNIEL), a trade association.ResultsDuring the period of data collection, the dairy industry employed CPA practices on numerous occasions by using three strategies: the ‘information and messaging’, the ‘constituency building’ and the ‘policy substitution’ strategies. The most common practice was the shaping of evidence in ways that suited the industry. The industry also sought involvement in the community, establishing relationships with public health professionals, academics and the government.ConclusionsOur study shows that the dairy industry used several CPA practices, even during periods when there was no specific policy debate on the role of dairy products in dietary guidelines. The information provided here could inform public health advocates and policy makers and help them ensure that commercial interests of industry do not impede public health policies and programmes.

scholarly journals Nutri-score saga in France: how food industry actors tried to influence public health policies and public opinion

2018 ◽  
Vol 9 (2) ◽  
pp. 109-120 ◽  
Author(s):  
Mélissa Mialon ◽  
Chantal Julia ◽  
Serge Hercberg
Keyword(s):  
Public Health ◽  
Public Opinion ◽  
Food Industry ◽  
Political Activity ◽  
Corporate Political Activity ◽  
Ample Evidence ◽  
The Media ◽  
Expected Benefits ◽  
The Government ◽  
Health Objectives

In October 2017 in France, the government recognized the Nutri-Score front-of-pack labelling system as the only official system to be used on food products. As of July 2018, a total of 70 companies had implemented it voluntarily. There is ample evidence to support its use, and multiple expected benefits in terms of public health. We present here an essay discussing about the Nutri-Score saga. A policy dystopia model, from the literature on tobacco industry tactics, was adapted to classify the corporate political activity of the food industry during the development and implementation of the Nutri-Score. We conclude that, despite public commitments made by some industry actors to implement this system, the food industry is still strongly trying to influence policy and public opinion in the country. There are and will be many hurdles along the way, with food industry members trying to influence regulation at the European level, and building alliances with the media, among others, in France. Hopefully, public health objectives will prevail over commercial interests, in France and abroad.

Corporate Political Strategies

2020 ◽  
Author(s):  
Rodrigo B. DeMello
Keyword(s):  
Competitive Advantage ◽  
Resource Dependence ◽  
Political Influence ◽  
Resource Dependence Theory ◽  
Revolving Door ◽  
Political Activity ◽  
Future Research ◽  
Political Strategies ◽  
Theoretical Approaches ◽  
Corporate Political Strategies

Firms deploy value-based strategies to achieve competitive advantage in the marketplace. However, processes of value creation and appropriation do not happen in a vacuum but are structured by a set of formal market institutions that define, among other things, policies and regulations on standards, privacy, safety, trade, and access to resources. Corporate political strategies are the ways firms use to shape these policies and regulations in favorable ways that help them achieve competitive advantage. The political activities include lobbying, participation in hearings, campaign contributions, the use of revolving-door personnel, advocacy, grass-roots mobilization, and nurturing and exploiting political ties. Firms interact with government officeholders in different government arenas, such as national and local legislatures, government agencies, and the judiciary branch. For most corporations, being able to deploy effective political strategies is, therefore, necessary for achieving sustainable competitive advantage. The research into corporate political strategies has tried to explain why firms engage in political strategy, when, and which political activity would yield the best results. The usual theoretical framings draw from Resource Dependence Theory, Institutional Theory, Resource-Based View, Agency Theory, and Stakeholder Theory. While the strategic logic underlying each theoretical approach varies, they are better seen as complementary to each other. The fact that the phenomenon of political strategies is complex, dynamic, and an important part of daily business of several corporations favors the integration of different theoretical approaches. Although the literature on corporate political strategies has considerably advanced, there are still areas that could benefit from future research: the integration of market and political strategies, especially the use of market actions as political influence; the integration of social and political strategies; the role that individual and managerial aspects play in choice of political strategies; and multicountry comparative studies, especially focusing on ideological turnarounds and state capitalism.

scholarly journals Aligning to disadvantage: How corporate political activity and strategic homophily create path dependence in the firm

2020 ◽  
pp. 001872672090892
Author(s):  
Andrew Perchard ◽  
Niall G MacKenzie
Keyword(s):  
Path Dependence ◽  
Business History ◽  
Political Activity ◽  
Environmental Scanning ◽  
Corporate Political Activity ◽  
Government Relations ◽  
Organizational Behaviour ◽  
Lock In ◽  
Historical Methods ◽  
The Impact

To what extent should firms get close to government for competitive advantage? What happens if they get too close? In this article we explore how corporate political activity inculcated strategic homophily in leading UK aluminium producer, the British Aluminium Company Ltd, resulting in its path dependence and eventual lock-in. The article makes three main contributions: a longitudinal study of corporate political activity and strategic homophily revealing their organizational manifestations and detailed understanding of certain mechanisms of path dependence; articulating the value of historical methods and perspectives to exploring organizational path dependence; and exploring the impact that prolonged business-government relations can have on the organizational behaviour and strategic outlook of the firm with implications for TMT selection and environmental scanning. In so doing it responds to calls for firms to align market positions with political activity, as well as those for the recognition of the value of business history in better understanding the links between corporate political activity and firm performance. It further elucidates the longer-term consequences of strategic homophily, which has to date focused on the early stages of venture formation.

Effect of Competitive Strategies on Performance of Uber Online Taxi Firm in Nairobi, Kenya

2019 ◽  
Vol 3 (IV) ◽  
pp. 80-92
Author(s):  
Peter Omunyala Wakhu ◽  
Shadrack Bett
Keyword(s):  
Organizational Performance ◽  
Quantitative Data ◽  
Resource Dependence ◽  
Target Population ◽  
Resource Dependence Theory ◽  
Descriptive Statistics ◽  
Competitive Strategies ◽  
Cost Leadership ◽  
The Government ◽  
Focus Strategies

The aim of this study was to investigate the effect of competitive strategies on the performance of Uber Online Taxi Firm in Nairobi, Kenya. The specific objectives of the study were: to examine how leadership, differentiation, and focus strategies influence the performance of Uber. The study was very significant to the top management of uber, the government, the partners/drivers and other researchers. The study was anchored on the following theories: Porter’s generic strategies model, resource-based view theory, and resource dependence theory. The study took a descriptive research design and the target population was composed of 130 operators; sampling size was the same as target population as a complete census was preferred. The study used a semi-structured questionnaire that was administered to each member of the population. Out of the 130 questionnaires administered only 91 questionnaires were filled by respondents. Both descriptive and inferential statistics were used for data analysis. Regression analysis was used to test the relationship between performance and the independent variables. Quantitative data collected was analyzed using descriptive statistics and Statistical Package for Social Sciences (SPSS) was used to analyze the quantitative data where descriptive statistics such as means, standard deviation, frequencies and percentages were used to describe the data. The variables used in the study included low cost leadership strategy, differentiation strategy and focus strategy which significantly influenced the organizational performance of Uber Online Taxi Firm. The study recommended that Uber should embrace cost leadership, differentiation and focus strategies in their operations since they will enable the firm attain competitive advantage over their rivals such as Taxify and Little Cab.

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