Using a qualitative, grounded theory approach, this study examined the public policy interactions of small firms. The small firms' cognitive understanding and sensemaking approaches to government are revealed through an examination of successful and failed influence attempts. Embedded in these attempts, a set of factors (Issue Characteristics and Influence Process) were discovered, which affect the outcome of an influence effort. Issue Characteristics reflected attributes chief executive officers (CEOs) looked for when examining an issue and include Issue Impact, Issue Clarity, and (...) Issue Image. Influence Process factors focus on how influence is acquired and exercised, and include Issue Champion, Persistence, and Coalition Development. (shrink)

This article develops a theoretical framework for the analysis of corporate political involvement, as mediated not only by environmental factors but also by characteristics of the firm itself. Consistent with previous research, the authors examine how policy salience and the political, macroeconomic, and industry environments influence the level of a firm's involvement in politics. In addition, the authors' model takes into account such influences as corporate structure, resources, political experience, and stakeholder dependence.

Using resource dependency and institutional theories, we create and test a model examining the relationships among senior management commitment, resource allocations, and the structure of public affairs departments. Using a large sample of U.S.-based firms, we find a positive relationship between senior management commitment to the public affairs function and the level of human and monetary resources allocated to the public affairs department. Furthermore, firms structure their public affairs responsibilities into three common activity sets: communications, collaborations, and local activities. These (...) common activities are, in turn, positively associated with senior management commitment and resources allocated to the public affairs department. (shrink)

This article reviews the literature on corporate political action (CPA), integrating the perspectives of nine basic social science theories. Theoretical and empirical research grounded in these nine theories have described the characteristics of firms that engage in CPA (who), their rationale (why), and their methods (how). To a much lesser extent, the literature has also addressed how CPA changes over time (when) and the settings in which CPA is done (where). Reexamining the CPA literature this way directs us toward fundamental (...) research questions that have not yet been addressed. (shrink)

Variance theories have dominated corporate political action (CPA) research because the pioneering works in the 1970s and 1980s. Process theories offer an entirely new perspective on CPA research, as they are able to explain processes across a number of levels of analysis and link actions to contexts. We add to the existing CPA literature by offering a process model that can be useful especially in historical and evolutionary analysis. Our model depicts CPA as a complex system in which a firm’s (...) actions are affected by various factors across organizational, industry, and institutional levels of analysis. As political actions also influence these factors, the process is in essence systemic and path dependent. Our model supplements existing research by offering the possibility to explain the long-term consequences of CPA vis-à-vis wider societal changes and by promoting longitudinal research strategies. In addition to the theoretical model, we provide a historical analysis of the evolution of the Finnish paper and pulp industry to illustrate the applicability of the framework. (shrink)

The term nonmarket is increasingly applied to environments, institutions, organizations, and exchanges that are also labeled as noneconomic and social. Why has this new term been coined and widely adopted, and what are its distinct denotations? The author traces the development of this concept through four perspectives on nonmarket, which are integrated into an overarching definition, after relating them to major theories and pointing to major research challenges. The constituting and correcting of markets, firms, and noneconomic institutions are the central (...) concerns of nonmarket studies that bear on all organizing projects. (shrink)