Top

Published in:

2020 | OriginalPaper | Chapter

2. How to Approach Nonmarket Strategy and Corporate Political Activity

Author : Eric Romann

Published in: Nonmarket Strategy in Japan

Publisher: Springer Singapore

Activate our intelligent search to find suitable subject content or patents.

search-config

AI-assisted search

Off

Abstract

This chapter presents an overview of the theoretical approaches through which the corporate political activity (CPA) phenomenon can be analyzed. The number of related fields and disciplines, such as economics, political science, sociology, management, as well as the volume of literature is so extensive that the choice was made to only briefly review the fundamentals and focus for this book’s analysis on a combination of political science and strategic management.

A discussion of the concept of power leads to the adoption of the broader and better-suited notion of influence as an elemental analytic dimension that can be understood as ranging from pressure to persuasion. This dimension is substantiated in a tool, the Balance of Influence matrix.

A second central dimension underlying any CPA situation consists of the conceptual pair Representativeness/Credibility. These notions encompass the more traditional ideas of Collective/Individual actions but are meant to describe better and comprehensively a nuanced reality. They give birth to the second essential tool, the Balance of Coalition. These two dimensions could be seen as the conceptual infrastructure on which the practical CPA tactics are built in the framework, that is the subject of this chapter.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

previous chapter Introduction

next chapter Framework

Criticizing the elusiveness of the concept of power due, inter alia, to the different lens adopted by each school (political scientists/pluralism and sociologists/elitism), Bachrach and Baratz propose a new approach based on the analysis of dominant values, myths and, above all, existing bias to understand the dynamic of non-decision-making.

After having defined power in a generic manner, stating that people exert power over others when they affect them in a manner contrary to their interests, Lukes points out that people sometimes act willingly in ways contrary to their interests. To him, this constitutes the third dimension of power that can be seen in ideology where no coercion or constraints are at play.

This fourth dimension questions the production of the subject as well as the norms governing our self-understandings and political practices.

A central criticism to the concept of soft power consists of considering that soft power is only secondary to hard power and cannot exist without its backing.

CME: Coordinated Market Economy, LME: Liberal Market Economy.

Gyôkai: industry

Interviewees, especially the Japanese companies, report that the first thing officials ask them when they come to explain their case is why they do not use the channel of their trade association (the “normal” way), and that they cannot do anything for a single company.

Nemawashi: prior consultation and behind-the-scenes consensus-building process.

Astley, W. G., & Sachdeva, P. S. (1984). Structural Sources of Intraorganizational Power: A Theoretical Synthesis. Academy of Management Review, 9(1), 104–113.

Bachrach, P., & Baratz, M. S. (1962). Two Faces of Power. The American Political Science Review, 56(4), 947–952.CrossRef

Barnett, M., & Duvall, R. (2005). Power in International Politics. International Organization, 59(1), 39–75.CrossRef

Baron, D. P. (1993). Business and Its Environment. Englewood Cliffs, NJ: Prentice Hall.

Baron, D. P. (1995a). The Nonmarket Strategy System. Sloan Management Review, 37(1), 73–85.

Baron, D. P. (1995b). Integrated Strategy: Market and Nonmarket Components. California Management Review, 37(2), 47–65.CrossRef

Baron, D. P. (2013). Business and Its Environment (7th ed.). Upper Saddle River, NJ: Prentice Hall.

Blau, P. (1964). Exchange and Power in Social Life. London: John Wiley and Sons.

Boddewyn, J., & Brewer, T. L. (1994). International Business Political Behavior: New Theoretical Directions. Academy of Management Review, 19(1), 119–143.CrossRef

Bonardi, J. P., Holburn, G. L. F., & Vanden Bergh, R. G. (2006). Nonmarket Strategy Performance: Evidence from U.S. Electric Utilities. Academy of Management Journal, 49(6), 1209–1228.CrossRef

Cohen, D. M., March, G. J., & Olsen, P. J. (1972). A Garbage can Model of Organizational Choice. Administrative Science Quarterly, 17(1), 1–25.CrossRef

Dahl, R. A. (1957). The Concept of Power. Behavioral Science, 2(3), 201–215.CrossRef

Dahl, R. A. (1963). Modern Political Analysis. Englewood Cliff, NJ: Prentice Hall.

Dahl, R. A., & Stinebrickner, B. (2003). Modern Political Analysis (6th ed.). Upper Saddle River, NJ: Prentice Hall.

Digeser, P. (1992). The Fourth Face of Power. The Journal of Politics, 54(4), 977–1007.CrossRef

Emerson, R. M. (1962). Power-Dependence Relations. American Sociological Review, 27(1), 31–41.CrossRef

Epstein, E. (1969). The Corporation in American Politics. Englewood Cliffs, NJ: Prentice-Hall.

Funkhouser, G. R., & Parker, R. (1999). An Action-based Theory of Persuasion in Marketing. Journal of Marketing Theory and Practice, 7(3), 27–40.CrossRef

Getz, K. A. (1997). Research in Corporate Political Action: Integration and Assessment. Business and Society, 36(1), 32–72.CrossRef

Guegen, D. (2007). European Lobbying. Brussels: Europolitics.

Hillman, A. J., & Hitt, M. (1999). Corporate Political Strategy Formulation: A Model of Approach, Participation, and Strategy Decisions. Academy of Management Review, 24(4), 825–842.CrossRef

Homans, G. C. (1961). Social Behavior: Its Elementary Forms (Rev. ed. 1974). New York: Harcourt Brace.

Kindleberger, C. P. (1970). Power and Money. New York: Basic Books.CrossRef

Kingdon, J. W. (1995). Agendas, Alternatives, and Public Policies. New York: HarperCollins.

Lassalle-De Salins, M. (2006). Le meta-lobbying ou comment les entreprises influencent les décisions des organisations intergouvernementales: Le cas des stratégies politiques de l’industrie française au Codex Alimentarius. (Doctoral dissertation, Humanities and Social Sciences, HEC PARIS). Retrieved April 3, 2014, from https://tel.archives-ouvertes.fr/pastel-00004621/document.

Lawton, T., McGuire, S., & Rajwani, T. (2013). Corporate Political Activity: A Literature Review and Research Agenda. International Journal of Management Reviews, 15(1), 86–105.CrossRef

Lukes, S. (1974). Power: A Radical View. New York: Macmillan.CrossRef

Luo, Y. (2001). Toward a Cooperative View of MNC-Host Government Relations: Building Blocks and Performance Implications. Journal of International Business Studies, 32(3), 401–419.CrossRef

Mahoney, C. (2008). Brussels versus the Beltway: Advocacy in the United States and the European Union. Washington, DC: Georgetown University Press.

Nye, J. S. (2004). Soft Power. New York: Public Affairs.

Olson, M. (1965). The Logic of Collective Action: Public Goods and the Theory of Groups. Cambridge MA: Harvard University Press.

Pfeffer, J., & Salancik, G. A. (1978). The External Control of Organizations: A Resource Dependence Perspective. New York: Harper & Row Publishers.

Salorio, E. M., Boddewyn, J., & Dahan, N. (2005). Integrating Business Political Behavior with Economic and Organizational Strategies. International Studies of Management and Organization, 35(2), 28–55.CrossRef

Weber, M. (1947). The Theory of Social and Economic Organization (A. M. Henderson & T. Parsons, Trans.). New York: Oxford University Press.

Woll, C. (2007). Leading the Dance? Power and Political Resources of Business Lobbyists. Journal of Public Policy, 27(1), 57–78.CrossRef

Yoffie, D. B. (1987). Corporate Strategies for Political Action: A Rational Mode. In A. A. Marcus, A. M. Kaufman, & D. R. Beam (Eds.), Business Strategy and Public Policy. Westport, CT: QuorumBooks.

Yoffie, D. B., & Bergenstein, S. (1985). Creating Political Advantage: The Rise of the Political Entrepreneur. California Management Review, 28(1), 124–139.CrossRef

Title: How to Approach Nonmarket Strategy and Corporate Political Activity
Author: Eric Romann
Publisher: Springer Singapore
Book: Nonmarket Strategy in Japan
Print ISBN: 978-981-15-7324-8

Electronic ISBN: 978-981-15-7325-5

Copyright Year: 2020
DOI: https://doi.org/10.1007/978-981-15-7325-5_2