CPA and diversification JIM 2022_02_28 (accepted).pdf (718.31 kB)
Corporate political activity and firm performance: the moderating effects of international and product diversification
journal contribution
posted on 2023-06-10, 02:51 authored by Vikrant ShirodkarVikrant Shirodkar, Tazeeb Rajwani, Christian Stadler, Julia Hautz, Michael C J MayerPrior research has found that corporate political activity (CPA) can both positively and negatively impact firm performance. Combining agency theory with the resource-based view, we examine the relationship between domestic lobbying (a key form of CPA) and firm performance by explicating the moderating effects of international and product diversification. We argue that expansion into international and product markets increases a firm's resources and reduces agency costs in domestic lobbying. Our results, based on a sample of 737 firms, show that lobbying is positively associated with performance for firms that are diversified in both international markets and along product-lines; whereas lobbying is counter-productive for purely domestic and undiversified firms. Our results contribute to the literature on the firm performance implications of corporate political activity by highlighting the roles of international and product diversification.
History
Publication status
- Published
File Version
- Accepted version
Journal
Journal of International ManagementISSN
1075-4253Publisher
ElsevierExternal DOI
Issue
4Volume
28Page range
1-14Article number
a100941Department affiliated with
- Strategy and Marketing Publications
Research groups affiliated with
- International Business Publications
Full text available
- No
Peer reviewed?
- Yes
Legacy Posted Date
2022-03-08First Compliant Deposit (FCD) Date
2022-03-08Usage metrics
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