An examination of the individual and interaction effect of absorptive capacity and corporate political activity on product innovation

2022 ◽  
pp. 1-22
Author(s):  
Yanyan Li ◽  
Shanxing Gao
Keyword(s):  
Absorptive Capacity ◽  
Interaction Effect ◽  
Product Innovation ◽  
Political Activity ◽  
Corporate Political Activity ◽  
The Individual

scholarly journals The Effect of Individual’s Technological Belief and Usage on Their Absorptive Capacity towards Their Learning Behaviour in Learning Environment

2021 ◽  
Vol 13 (2) ◽  
pp. 718
Author(s):  
Thomas Dolmark ◽  
Osama Sohaib ◽  
Ghassan Beydoun ◽  
Kai Wu
Keyword(s):  
Social Networks ◽  
Absorptive Capacity ◽  
Structural Equation Modelling ◽  
Structural Equation ◽  
Social Influences ◽  
Technology Readiness ◽  
Learning Behaviour ◽  
Individual Level ◽  
Equation Modelling ◽  
The Individual

Absorptive capacity is a common barrier to knowledge transfer at the individual level. However, technology absorptive capacity can enhance an individual’s learning behaviour. This study investigates that technology readiness, the tools for knowledge sources, social influences, and social networks influence an individual’s absorptive capacity on an adaptation of the individual learning behaviour. A quantitative approach is used to assess the presence of a causal relationship from the constructs mentioned above. Data were collected from university students in Australia to examine the hypotheses. With 199 responses, a partial least squares structural equation modelling (PLS-SEM) approach was used for the analysis. The results generated mixed findings. Individual’s technological belief in optimism and innovation and social influences had a significantly weaker effect on individual absorptive capacity, which in turn had a significantly weaker impact on their learning behaviour.

scholarly journals Corporate Political Strategies in Weak Institutional Environments: A Break from Conventions

2019 ◽  
Vol 161 (4) ◽  
pp. 855-876
Author(s):  
Tahiru Azaaviele Liedong ◽  
Daniel Aghanya ◽  
Tazeeb Rajwani
Keyword(s):  
Resource Dependency ◽  
Emerging Countries ◽  
Policy Implications ◽  
Political Activity ◽  
Dark Side ◽  
Political Strategies ◽  
Corporate Political Activity ◽  
Corporate Political Strategies ◽  
Shed Light ◽  
Universal Application

Abstract There is a lack of research about the political strategies used by firms in emerging countries, mainly because the literature often assumes that Western-oriented corporate political activity (CPA) has universal application. Drawing on resource-dependency logics, we explore why and how firms orchestrate CPA in the institutionally challenging context of Nigeria. Our findings show that firms deploy four context-fitting but ethically suspect political strategies: affective, financial, pseudo-attribution and kinship strategies. We leverage this understanding to contribute to CPA in emerging countries by arguing that corporate political strategies are shaped by the reciprocity and duality of dependency relationships between firms and politicians, and also by advancing that these strategies reflect institutional weaknesses and unique industry-level opportunities. Importantly, we shed light on the muttered dark side of CPA. We develop a CPA framework and discuss the research, practical and policy implications of our findings.

scholarly journals With other people’s money: Campaign financing as an agency problem

2019 ◽  
Vol 45 (1) ◽  
pp. 40-49 ◽  
Author(s):  
Marina Amado Bahia Gama ◽  
Gisele Walczak Galilea ◽  
Rodrigo Bandeira-de-Mello ◽  
Rosilene Marcon
Keyword(s):  
Agency Theory ◽  
Political Campaigns ◽  
Political Activity ◽  
Corporate Political Activity ◽  
Listed Firms ◽  
Electoral Campaigns ◽  
Earning Quality ◽  
Campaign Financing ◽  
Harmful Effects

Agency theory explanations for corporate political activity assume that managers distort resource allocation to invest in political connections to pursue personal benefits. While distorted resource allocations yield poor earning quality, we expect that companies with efficient governance may curb this opportunistic behavior. We used matching procedures to identify the effects of financing political campaigns on the earning quality of the firm. We assembled an original panel of listed firms in Brazil from 1998 to 2013. We found that firms that donated to electoral campaigns had a lower earning quality than nondonor firms. Firms with superior corporate governance instruments were able to reduce the harmful effects on earning quality. These results support the tenets of agency theory in explaining why firms engage in politics.

Fostering Product Innovation Through Digital Transformation and Absorptive Capacity

2020 ◽  
Vol 17 (06) ◽  
pp. 2050040
Author(s):  
Alejandro Coronado-Medina ◽  
Jose Arias-Pérez ◽  
Geovanny Perdomo-Charry
Keyword(s):  
Structural Equation Modeling ◽  
Survey Data ◽  
Absorptive Capacity ◽  
Product Innovation ◽  
Structural Equation ◽  
Digital Transformation ◽  
Mediating Effect ◽  
Equation Modeling ◽  
The Relationship

This paper analyzes the mediating effect of absorptive capacity (AC) on the relationship between digital transformation from e-business capabilities (EBC) perspective and product innovation (PI). Structural equation modeling (SEM) was carried out with the survey data from a sample of firms that belong mainly to highly digitalized sectors. The results indicate the existence of a full mediation, which means knowledge derived from the digital operation of the business can only result in PI if AC plays an intermediation role. Hence, this finding calls into question the idea that digitalization alone and automatically acts as a PI driver.

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.

Vices and Virtues of Corporate Political Activity

2007 ◽  
Vol 48 (1) ◽  
pp. 105-132 ◽  
Author(s):  
Saku Mantere ◽  
Kalle Pajunen ◽  
Juha-Antti Lamberg
Keyword(s):  
Political Activity ◽  
Corporate Political Activity

Corporate Political Activity and Regulatory Capture: How Some Companies Blunt the Knife of Socially Oriented Investor Activism

2016 ◽  
Vol 44 (5) ◽  
pp. 2064-2093 ◽  
Author(s):  
Michael Hadani ◽  
Jonathan P. Doh ◽  
Marguerite A. Schneider
Keyword(s):  
Shareholder Activism ◽  
Securities And Exchange Commission ◽  
Political Activity ◽  
Social Movement Organizations ◽  
Regulatory Capture ◽  
Corporate Political Activity ◽  
Nonmarket Strategy ◽  
Labor Policies ◽  
The Status ◽  
The Impact

Socially oriented shareholder activism is an increasingly important mechanism through which social movement organizations seek to influence the private sector by exerting pressure on corporate activities in areas such as human rights, environmental protection, and labor policies. This activism challenges the status quo of targeted firms and potentially their institutional field, disrupting “business as usual” and often drawing negative attention to the firms. We theorize that some firms might use corporate political activity (CPA) as an indirect, nonmarket strategy aimed at regulatory capture to reduce the impact of such disruptions. We focus on one popular avenue of shareholder activism—the proxy proposal mechanism—and the role the Securities and Exchange Commission (SEC) plays in allowing omission of socially oriented shareholder proposals from the proxy ballot. Using two distinct data sources, we find evidence that for S&P 500 firms, the SEC allows for the omission of the proposals from proxy ballots more frequently for those firms more active in CPA. These findings inform the growing scholarship on socially oriented activism as well as suggest the indirect influence of CPA on government agency decision making.

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