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1 – 10 of over 112000Henry F.L. Chung and Mia Hsiao-Wen Ho
Given the contradictory findings of standardization/adaptation of marketing strategy in explaining export performance in the extant research, this study aims to examine the…
Abstract
Purpose
Given the contradictory findings of standardization/adaptation of marketing strategy in explaining export performance in the extant research, this study aims to examine the contingent effects of managerial ties and born global orientation in the standardized advertising-export performance conceptualization.
Design/methodology/approach
The study used two-respondent method in the survey research by a sample of 155 exporting firms operating in the industrial marketing based in Australia and New Zealand and applied hierarchical regression analysis to test the hypotheses.
Findings
The findings demonstrate that standardized advertising has a significant effect on export performance and this relationship is positively moderated by business ties. Such effect is particularly enhanced for born global firms (than nonborn global firms). However, political ties negatively influence the impact of standardized advertising on performance and such effect is stronger for born global firms.
Research limitations/implications
A broader perspective of contingent variables should be included to examine the underlying relationship between standardized advertising and export performance in capturing the dynamism in international marketing contexts, such as institutional frameworks or sociocultural environments in host countries.
Practical implications
Standardized advertising is critical for born global firms’ export performance as it can increase efficiency and speed up internationalization processes. Such positive impact of standardized advertising on export performance is further enhanced if born global firms allocate resources to develop strong business ties with host country partners instead of building political ties with host country governments, because smooth business networking can facilitate standardized advertising on industrial marketing, yet justifiable political relations require intricate negotiations that often prolong internationalization progress.
Originality/value
This study incorporates managerial ties and born global orientation as contingent factors in fixing the theoretic interlock between standardization advertising strategy and export firm performance.
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Scholars have underscored the importance of organizational authenticity, but it is unclear how it influences the links among market strategy, and nonmarket strategy (NMS) and firm…
Abstract
Purpose
Scholars have underscored the importance of organizational authenticity, but it is unclear how it influences the links among market strategy, and nonmarket strategy (NMS) and firm performance. This study addresses this gap in the literature.
Design/methodology/approach
A survey of 294 managers in firms based in the United States investigates configurations among competitive strategy (e.g. cost leadership or differentiation), political and social nonmarket strategy (NMS), authenticity, and firm performance.
Findings
Cost leaders tend to engage in political nonmarket strategy (PNMS), but the interaction does not necessarily improve firm performance. Differentiators are more likely to pursue social nonmarket strategy (SNMS) and perform better, but neither market-nonmarket strategy configuration is inherently optimal.
Research limitations/implications
The results support market-nonmarket strategy configurations but do not prescribe optimal combinations. However, the sample is cross-sector and employs self-reports for firm performance.
Practical implications
Political and social authenticity can enhance firm performance, but nonmarket activity can compromise a firm’s ability to be politically and socially authentic. Authenticity can drive performance, but a firm’s nonmarket activity can compromise its ability to be politically and socially authentic. Firms should view a prospective loss in authenticity as a potential cost of nonmarket activity.
Originality/value
This paper investigates how a firm’s emphasis on market (competitive) strategies, political and social nonmarket strategies, and political and social authenticity impact financial and non-financial performance. It also tests the veracity of two market-nonmarket configurations, cost leadership with political NMS and differentiation with social NMS.
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Stefan Heidenreich, Jonas F. Puck and Igor Filatotchev
Prior research on political strategies has predominantly analyzed singular political activities or drivers for firms to become politically active and, overall, only scarcely…
Abstract
Prior research on political strategies has predominantly analyzed singular political activities or drivers for firms to become politically active and, overall, only scarcely obtained insights on performance consequences of political strategizing. To further develop the realm of political strategy, this study analyzes the effects of two “generic” political strategies on firms’ (1) stakeholder network development and (2) performance. Specifically, we provide theoretical and empirical evidence whether the two political strategies add to or substitute each other in their effect on the corresponding outcome variable. We find that an information strategy significantly affects the stakeholder network development, whereas no influence of a financial incentive strategy could be detected. Moreover, we find that the stakeholder network drives firm performance and, more importantly, that the two political strategies substitute each other in their effect on firm performance. Thus, we provide initial insights on the efficiency of political strategies when firms opt to execute an information strategy and financial incentive strategy simultaneously. The results of our study have important implications for research as they put a new light on the efficiency of political strategies.
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Jaison Caetano da Silva, Rosilene Marcon, Ronaldo Parente and Cinara Gambirage
The purpose of this study is to investigate the effect of international expansion of emerging markets multinationals (EMNEs) on the home country nonmarket political strategy and…
Abstract
Purpose
The purpose of this study is to investigate the effect of international expansion of emerging markets multinationals (EMNEs) on the home country nonmarket political strategy and why some EMNEs intensify this political tie more than others.
Design/methodology/approach
We test our theoretical framework using longitudinal data, with 16 years of observations, in Multilatinas and state loans from Brazil, one of the main outward foreign direct investment (OFDI) players in the world and the OFDI leader in Latin America.
Findings
Theoretically grounded on the institution-based view of strategy, it can be postulated that international expansion is a driver of home country nonmarket political strategy. It can also be hypothesized that political tie intensity is affected by the capacity of EMNEs to deal with international expansion issues without having to depend on relationship with homes country nonmarket political actors. The results provide support for the hypotheses presented.
Originality/value
This paper contributes to the EMNE internationalization literature by extending the understanding of the underlying motivations and forces shaping the home country nonmarket political strategy of multinationals from emerging markets and, thus, helping understand why some EMNEs tend to be more politically active than others. Likewise, the study contributes to advancing understanding regarding the home country strategic responses adopted by Multilatinas and the forces behind the nonmarket political strategies they employ in their international expansions, especially during turbulent times.
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The central question in this article is: do recurring types of corporate lobbying strategies exist (in the same way as for generic strategies, for example)? The objective of this…
Abstract
Purpose
The central question in this article is: do recurring types of corporate lobbying strategies exist (in the same way as for generic strategies, for example)? The objective of this research is to define a typology of lobbying strategies implemented by French and UK firms, and then to discuss to what extent firms' political strategies are universal or country‐specific.
Design/methodology/approach
An empirical study examined 679 lobbying campaigns (also known as “political action”) of French and UK firms. They were grouped into categories and described using statistical data analysis techniques (multiple correspondence analysis and classification).
Findings
The results highlight a pattern in the corporate lobbying phenomenon: five types of lobbying strategy (that can be described and illustrated) exist for French firms, and four for UK firms. Tentative explanations can be put forward: implementation of lobbying strategies appears to depend on the type of issues addressed (which could be universal), but also on the country's political environment (which could be country specific). The study shows the interdependent influence of organisational resources, economic structures and the political environment (laws and the role of the state) on firms' lobbying strategies. Thus, societal effects theory could be applied to firms' political strategies, which are global and local at the same time.
Originality/value
Lobbying public decision makers is an increasingly widespread managerial practice, but has so far attracted little research attention in Europe.
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Haritz Gorostidi-Martinez and Xiaokang Zhao
By reviewing the overall concept of corporate political strategy (CPS), the purpose of this paper is to display a contemporary summary of issues of the diverse global CPSs. This…
Abstract
Purpose
By reviewing the overall concept of corporate political strategy (CPS), the purpose of this paper is to display a contemporary summary of issues of the diverse global CPSs. This study additionally aims to provide relevant corporate political behavioral concepts that surround a firm’s political actions when entering specific politico-economic markets as well as future work recommendations. This paper further provides a contemporary bibliographic analysis on CPS.
Design/methodology/approach
Through a systematic ISI Web of KnowledgeTM All Databases literature review on “CPS,” the research was refined in relation to articles from “all year time-span,” “social science,” and “business economic” areas. After relevant papers were retrieved, sorted, and analyzed, a final bibliographic analysis on CPS was performed using HistCite reference graph maker.
Findings
Results of this research provide a table with a conceptual summary of different CPS types, approaches to political strategy, participation levels, assessment of the political environments, research implications, as well as other related CPS factors.
Research limitations/implications
There is still a lack of empirical research on how specific firm CPSs can help overcome the effect of foreignness within different host countries. This study provides an overview and list of CPSs that companies use when entering a particular politico-economic context as well as inner CPS research streams.
Originality/value
This contemporary conceptual taxonomy on CPS provides researchers as well as practitioners with insights into the global CPS evolution, in addition to a current picture of CPS within different contexts.
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The purpose of this paper is to examine political marketing with regard to its different conceptualisations and dimensions, and to suggest cognate areas for empirical research…
Abstract
Purpose
The purpose of this paper is to examine political marketing with regard to its different conceptualisations and dimensions, and to suggest cognate areas for empirical research efforts, especially in Sub‐Saharan Africa.
Design/methodology/approach
Perspectives from relevant extant literature on meaning and dimensions of political marketing are examined, and empirical examination of these perspectives in developing countries suggested.
Findings
It was found that political marketing has many conceptualisations and dimensions, and its practice may be coloured by environmental issues, especially in developing economies with weak democratic infrastructure.
Research limitations/implications
Empirical investigations of political marketing in developing economies, as suggested in this paper, may be constrained by secrecy, lack of secondary data, and aparty on the part of relevant party executives, among others.
Practical implications
Party executives will benefit from the conceptualisations and dimensions documented in this paper. In addition, researchers and students in the areas of marketing and political science will find the research agenda a fertile ground for empirical research effort.
Originality/value
This paper should be of value to political party executives, electoral commissions, educators and students of marketing and political science, in addition to government executives interested in relating beneficially with their citizens and other relevant stakeholders.
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Stefan Heidenreich, Jonas F. Puck and Phillip C. Nell
We aim at providing a more precise differentiation of external stakeholder pressures and their impact on multinational corporation (MNC) subsidiaries’ political strategies. Thus…
Abstract
We aim at providing a more precise differentiation of external stakeholder pressures and their impact on multinational corporation (MNC) subsidiaries’ political strategies. Thus, we analyse whether external stakeholder pressures entail a more intense use of political strategies, and whether pressures from public stakeholders are more influencing compared to pressures from private stakeholders. We use ordinary least squares (OLS) regression analysis to test our hypotheses with data from 157 subsidiaries in Brazil, Russia, Turkey, India, China and South Africa. We found that the higher external stakeholder pressures on the MNC subsidiary, the more intensely subsidiaries apply political strategies. Furthermore, both public and private stakeholder pressures affect political strategies in a positive way, but our results show no statistical significance for a difference in impact. The study differentiates the general concept of external stakeholder pressures into pressures from national public and national private stakeholders.
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Nan Jia and Kyle Mayer
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…
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.
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Chinese outward foreign direct investment (OFDI) often causes negative public responses, particularly in western industrialized countries. An important instrument of Chinese…
Abstract
Purpose
Chinese outward foreign direct investment (OFDI) often causes negative public responses, particularly in western industrialized countries. An important instrument of Chinese multinational corporations (MNCs) to overcome these concerns is the use of political strategies. The paper aims to discuss these issues.
Design/methodology/approach
Based on institutionalist theory, the author formulates research hypotheses and tests them with a sample of 611 subsidiaries of Chinese MNCs in Germany.
Findings
The study shows that CEO political connection is positively associated with the use of the information and financial incentives strategies, while state ownership influences the use of the financial incentives and reputation-building strategies. Also, moderating effects of subsidiary age on these three political strategies are revealed.
Originality/value
The author derives implications for the literature on corporate political strategies as well as for research on Chinese OFDI, institutional theory and international management theory.
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