Session 37

Political Ties: Knots or Bows?

Track M

Date: Monday, October 5, 2015

Track X

Time: 13:45 – 15:00

Paper

Room: Director's Row I


Session Chair:

  • Dodo zu Knyphausen-Aufsess, Technical University of Berlin

Title: Analyzing How Firms Benefit from Lobbying Scope, Influence, and Expenditures

Authors

  • Jason Ridge, University of Arkansas
  • Amy Ingram, Clemson University
  • Aaron Hill, Oklahoma State University

Abstract: Research focusing on firm lobbying strategy typically focuses on the expenditure of monetary resources as the primary aspect of this nonmarket strategy. We argue the current overarching view of lobbying is too narrowly focused on expenditures and that other factors underlie the success of a firm’s lobbying strategy. Thus, we seek to clarify lobbying strategy conceptually and we empirically demonstrate that lobbying strategy consists of three separate yet interdependent components: scope, influence, and expenditures. Further, we consider how these three components of lobbying work interdependently to affect the benefits firms receive. Using a sample of S&P 500 index firms, our findings confirm our hypotheses and add to our understanding of this important nonmarket strategy.

Title: Collective Action Strategies: Insights from a Multiple Case Study

Authors

  • Jan Henrik Voss, Technical University of Berlin
  • Dodo zu Knyphausen-Aufsess, Technical University of Berlin

Abstract: Policy-makers and firms have identified their interest in developing cities towards more sustainable, simultaneously attractive living and marketplaces. However, today’s cities follow other than market logics and do not comprise the organizational structures to easily implement and adopt solutions. Building on collective action theory, we analyze the strategies of four integrated city projects. By using a multiple case study design, we derive six hypotheses dealing with the collective actors’ attempts to influence the costs, visibility and desirability of collective action often deemed exogenous. By analyzing strategies to impact field-level variables we provide practicioners with insights on the complex city environment. By extending collective action theory towards the field of cooperative strategies, we further contribute to theory.

Title: Political Ties and Cost of Debt in Sub-Saharan Africa: A Study of Ghana

Authors

  • Tahiru Azaaviele Liedong, Cranfield University
  • Tazeeb Rajwani, University of Essex
  • George White, Old Dominion University

Abstract: Strategy research highlights that one of the reasons why firms develop political ties is to gain preferential access to finance. However, the association between political ties and cost of debt is contested. This, coupled with the literature’s limited consideration of moderation effects, has rendered our knowledge of the topic vague. In this study, we examine the contingent effect of political ties on cost of debt in Ghana. The results show that political ties are positively associated with cost of debt. This positive association is moderated negatively by financial ties and positively by borrowing from private-owned banks and Big-Four auditor appointments. Altogether, we show that corporate governance in firms with strong political ties is exacerbated by weak institutional perceptions, hence leading to high financing costs.

Title: Reality or Illusion? The Efficacy of Managerial Political Ties in Institutional Risk Reduction

Authors

  • Tahiru Azaaviele Liedong, Cranfield University

Abstract: Emerging countries have insufficiently developed institutional structures and high-risk business environments which, together, make the exploitation of business opportunities difficult. Consequently, non-market strategy studies have postulated that political strategies reduce the exposure of firms to risk, but those postulations have received little empirical attention. In this paper, I extend research on the instrumentality of political strategies by examining the efficacy of managerial political ties in institutional risk reduction. Using survey data from 179 firms in Ghana, I find that public affairs functions not only affect the strength, but also the direction of the association between political ties and institutional risk exposure. Altogether, the findings suggest that the proposed efficacy of political ties in risk reduction is illusive.

All Sessions in Track M...

Sun: 08:00 – 09:15
Session 49: Stakeholder Strategy and Corporate Growth
Sun: 09:45 – 11:00
Session 48: On Teaching CSR as a Strategic Management Topic
Sun: 11:15 – 12:30
Session 47: On the Emerging B Corp Phenomenon and the Future of Capitalism
Sun: 17:45 – 00:00
Session 322: Stakeholder Strategy Business Meeting
Mon: 08:00 – 09:15
Session 39: Who is a stakeholder?
Mon: 11:15 – 12:30
Session 34: New Explanations of Contextual Differences in CSR
Session 244: Legitimacy, Stakeholders, and Competition
Session 257: Explaining CSR: Internal Factors
Mon: 13:45 – 15:00
Session 37: Political Ties: Knots or Bows?
Mon: 16:45 – 18:00
Session 42: The Word is Out! Stakeholder Responses to Public Signals of Firms' Behaviors
Session 89: Integrating Theories of Stakeholders, Ownership, Governance and Boards
Tue: 08:00 – 09:15
Session 43: First Principles in Creating Value: Stakeholder Theory
Tue: 11:00 – 12:15
Session 260: CSR Challenges
Tue: 14:15 – 15:30
Session 44: What's New? Intersecting Stakeholders with Entrepreneurial Industries, Firms, and Organizational Forms
Tue: 15:45 – 17:00
Session 46: Accidents, Disasters, and Stakeholder Demands
Session 265: Performance Effects of CSR and Non Market Strategy
Tue: 17:30 – 18:45
Session 90: Stakeholder Strategies in Emerging Markets

All Sessions in Track X...

Sun: 08:00 – 09:15
Session 74: Open Strategy Workshops: Lessons Learned from Practising Strategizing
Sun: 09:45 – 11:00
Session 29: The Elephant in the Room: How public policy and institutions help drive innovation, entrepreneurship, and firm performance
Session 76: The evolution of the strategy as a profession and the field of strategy
Sun: 11:15 – 12:30
Session 12: Environmental Entrepreneurship: How and When do Entrepreneurs address Environmental Degradation?
Session 38: Big Game Hunting: Accessing and Interacting with Senior Executives for Empirical Research
Sun: 13:45 – 14:30
Session 307: Lifetime Achievement Award Recipient
Sun: 14:45 – 15:45
Session 7: New Frontiers in Technologies, Fields, and Business Models: Implications for Academic and Practice Knowledge Creation
Sun: 16:15 – 17:30
Session 61: The Institutional Level of Strategizing Activities
Session 261: Knowledge Creation and Sharing in Virtual Communities
Mon: 08:00 – 09:15
Session 72: External Influences: Audiences and Media
Session 126: Entry Mode & Cross-Border Acquisitions
Session 140: New Perspectives on the Outside Director Selection Process
Mon: 09:45 – 11:00
Session 8: Elevating our Understanding of Organizational Performance: Bridging the Frontiers of Business and Corporate Strategies
Mon: 11:15 – 12:30
Session 149: Management and Coordination of Multinationals
Session 220: Perspectives on CEO Compensation
Mon: 13:45 – 15:00
Session 16: Human Capital and Innovation
Session 37: Political Ties: Knots or Bows?
Session 63: Political and Material Aspects of Strategy Making
Session 97: Accelerators, corporate VCs and new venture creation
Session 258: Explainng CSR: External Factors
Mon: 15:15 – 16:15
Session 227: Mergers, Acquisitions and Divestitures: Reconfiguring Resource Bases for Value Creation and Growth
Session 308: Strategy Beyond the Firm: Creating and Capturing Value from External Resources
Session 310: When the Smoke Clears: The Emergence of the Cannabis Industry
Session 311: Theory Fragmentation in Strategic Management?
Session 312: Climate Change: Why and How Should Strategic Management Care?
Mon: 16:45 – 18:00
Session 42: The Word is Out! Stakeholder Responses to Public Signals of Firms' Behaviors
Session 112: Acquisitions - Before the Deal
Tue: 08:00 – 09:15
Session 309: Looking Good and Sounding Better: Impression Management by CEOs
Tue: 09:45 – 10:45
Session 9: Whatever Happened to Theory in Strategic Management?
Tue: 11:00 – 12:15
Session 70: CEO Characteristics: Microfoundations of Behavioral Strategy
Tue: 14:15 – 15:30
Session 116: Acquisitions - After the Deal
Tue: 15:45 – 17:00
Session 52: Entrepreneurial business models
Session 219: A Tough Crowd: Critical Examinations by Owners and Stakeholders
Session 262: Pioneering Knowledge
Tue: 17:30 – 18:45
Session 144: Board Structure: What Works Best?
Session 208: Internationalization Strategies and Performance


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