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When Do Firms Prefer Individual Action to Collective Action in The Pursuit of Corporate Political Strategy? A New Perspective on Industry Concentration

Published online by Cambridge University Press:  20 January 2017

Mine Ozer  and
Seung-Hyun Lee
Mine Ozer
Affiliation:
SUNY Oneonta
Seung-Hyun Lee
Affiliation:
University of Texas at Dallas
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Abstract

In this study we advance the current research on corporate political strategy by examining how firms decide on their level of engagement in political action. This study proposes a contingency approach that identifies conditions in which firms prefer individual action to collective action in their pursuit of political strategy and introduces a framework that addresses this preference. Our results show that even in concentrated industries, a firm's preference of individual action over collective action varies when government contracts or research and development intensity are important considerations.

Keywords

political strategycollective actionindustry concentration

Information

Type
Article
Information
Business and Politics , Volume 11 , Issue 1 , April 2009 , pp. 1 - 21
Copyright
Copyright © V.K. Aggarwal 2009 and published under exclusive license to Cambridge University Press 

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