Firm receptivity regarding marketplace vs political ties

Abstract

Purpose

Prior research has examined the sociopolitical force as simply a part of all types of environmental pressures, yet we argue that this force calls for a unique examination of marketing's role in firm responses to sociopolitical pressures. Understanding the degree to which firms attempt to manage forces and pressures in the external business environment is key to understanding marketing's role in impeding vs aiding public policy initiatives, and is the problem this research investigates.

Design/methodology/approach

Using structural equation modeling, data from 71 firms demonstrate that managing the sociopolitical force is, in fact, distinct from managing the other four market-based forces – consumer demand, supplier power, competition and technological shifts. Managing the sociopolitical force is shown to require fundamentally different skills and resources.

Findings

Results suggest that firm sociopolitical receptivity drives attempts to influence this unique external business environmental force, in turn limiting marketplace sociopolitical receptivity. Furthermore, attempts to influence such a unique force relies on resource-light marketing resources, which limits resource-heavy marketing.

Originality/value

Managing a political force with marketplace ramifications involves strategy that utilizes marketing, but is driven by relationships with social and political agents. This is truly an environmental management concept distinct from the management of the other four market-based forces. The analysis in this study demonstrates that managing another environmental force (i.e. competition force) involves different receptivity influences and marketing tactic outcomes.

Citation

Zeiss, J., Carlson, L. and Harvey, E.J. (2020), "Firm receptivity regarding marketplace vs political ties", American Journal of Business, Vol. 35 No. 3/4, pp. 129-151. https://doi.org/10.1108/AJB-09-2019-0069