Complementarity in Firms’ Market and Political Capabilities: An Integrated Theoretical Perspective

Abstract

We examine how a firm’s market-oriented capabilities (in areas such as R&D or marketing) and consumer focus (business-to-business or business-to-consumer) foster its effectiveness in pursuing corporate political activities. We then explore the sustainability of any advantage that firms may gain from their political activities. We develop a conceptual framework to propose that a firm’s political capabilities to implement different political tactics, such as information provision and constituency building, are a product of how related these tactics are to different market-oriented capabilities and to the skills needed to serve different types of customers. Finally, we propose that the integration of market strategies and political strategies provides new insight into the sustainability of the advantages that a firm might gain through political activities.

Citation

Jia, N. and Mayer, K. (2016), "Complementarity in Firms’ Market and Political Capabilities: An Integrated Theoretical Perspective", Strategy Beyond Markets (Advances in Strategic Management, Vol. 34), Emerald Group Publishing Limited, Leeds, pp. 437-470. https://doi.org/10.1108/S0742-332220160000034013