Lobbying: strategies to make a firm's competences generate value

Abstract

Extant work on lobbying primarily focuses on who is lobbying and is lobbied as well as strategies of how to exert influence. More fundamentally, we address (1) what drives firms to engage in lobbying activities at all and (2) what factors determine the alignment of corporate lobbying. More concrete, we investigate why and also how firms do lobbying. Another intention is to further anchor this highly relevant instrument of business practice in the scientific discourse of strategic management.

It turns out that the dynamic, systemic, cognitive, and holistic rationale of the competence perspective is a very strong contributor of fresh thoughts to the debate on lobbying as a strategic means. We adopt this perspective by specifically making use of the Competence-based Theory of the Firm (CbTF) in order to scrutinize this issue in theoretical terms. Especially path-dependent developments when building and leveraging a firm's resources and competences as well as resource/competence specificity cause organizational inertia and limited adaptability to changing environmental conditions. Instead of passively adapting to changing environmental conditions, lobbying activities directly aim at entrepreneurial and goal-oriented attempts to exert influence and to steer changes in the relevant business environment, basic conditions underlying every market process, or institutional migration paths at points of inflection. Acknowledging their discretionary potential to act, agents seek to achieve a strategic fit between market requirements and the output they are able to render based on their competences by using the lever of manipulating their environment.

Empirically, propositions are derived and validated with an integrated set of qualitative empirical methods applied in the German healthcare system between 2004 and 2008.

Citation

Gersch, M., Goeke, C. and Freiling, J. (2010), "Lobbying: strategies to make a firm's competences generate value", Sanchez, R. and Heene, A. (Ed.) Enhancing Competences for Competitive Advantage (Advances in Applied Business Strategy, Vol. 12), Emerald Group Publishing Limited, Leeds, pp. 1-22. https://doi.org/10.1108/S0749-6826(2010)0000012004