Quotation Shirodkar, Vikrant, Batsakis, Georgios, Konara, Palitha, Mohr, Alexander. 2022. Disentangling the effects of domestic corporate political activity and political connections on firms’ internationalisation: Evidence from US retail MNEs. International Business Review. 31


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Abstract

Scholars are increasingly investigating the implications of firms’ domestic corporate political activity (CPA) and political connections on their internationalisation prospects. In this paper, using insights from the resource dependence theory, we argue that domestic CPA and political connections developed within the home country have contrasting effects on firms’ international expansion, such that, while domestic CPAs (mainly, lobbying and campaign contributions) facilitate internationalisation, political connections deter internationalisation. We also argue that this relationship is moderated by firms’ international experience and product diversification. We test our hypotheses using a panel dataset comprising 38 retail Multinational Enterprises (MNEs) originating in the United States (US) whose activities we traced over the 16-year period 2003−2018. Our findings support our hypotheses.

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  • Retailers
  • Corporate political activity
  • Lobbying
  • Political action committees
  • Political connections
  • Internationalisation

Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal International Business Review
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new STRAT-B, WH-B
Language English
Title Disentangling the effects of domestic corporate political activity and political connections on firms’ internationalisation: Evidence from US retail MNEs
Volume 31
Year 2022
URL https://www.sciencedirect.com/science/article/pii/S0969593121001013
DOI http://dx.doi.org/10.1016/j.ibusrev.2021.101889
Open Access N

Associations

People
Mohr, Alexander (Details)
External
Batsakis, Georgios (ALBA Graduate Business School, Greece)
Konara, Palitha (University of Sussex Business School, United Kingdom)
Shirodkar, Vikrant (University of Sussex Business School, United Kingdom)
Organization
Institute for International Business (Mohr) (Details)
Research areas (ÖSTAT Classification 'Statistik Austria')
5307 Business and management economics (Details)
5344 Foreign trade (Details)
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