Hostname: page-component-78c5997874-j824f Total loading time: 0 Render date: 2024-11-05T16:24:20.586Z Has data issue: false hasContentIssue false
  • English
  • Français

Corporate political strategies in Europe: The determinants of firms' access to the European Commission

Published online by Cambridge University Press:  15 August 2019

Amanda M. Alves Open the ORCID record for Amanda M. Alves [Opens in a new window]
Get access Rights & Permissions [Opens in a new window]

Abstract

Corporate political strategies have been used extensively by firms attempting to shape their political environments. In this context, access to targeted policymakers is essential to allow their deployment. Thus, we propose to study the determinants of access to the European Commission representatives. This research builds on the resource-based view (RBV) of firms to argue that political knowledge is a valuable resource to increase firms' degree of access to the European Commission. To test our hypotheses, we built a novel dataset merging firms characteristics with lobbying meetings information, and analyze it through negative binomial regression. The results suggest the importance of political knowledge, emphasizing that it may represent a source of sustainable competitive advantage. This study highlights interesting information that broadens the understanding of corporate political strategies in the European Union.

Keywords

corporate political strategiespolitical knowledgelobbyingEuropean Commissionnegative binomial regression
Type
Research Article
Information
Business and Politics , Volume 22 , Issue 2 , June 2020 , pp. 307 - 338
Copyright
Copyright © V.K. Aggarwal 2019 and published under exclusive license to Cambridge University Press

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

†

The author would like to acknowledge and thank Timothy Yu-Cheong Yeung (Research Fellow of the Governance and Regulation Chair, Université Paris-Dauphine) and two anonymous reviewers for their constructive and insightful remarks during the review process.

References

ALTER-EU. 2018. “Corporate Capture in Europe.”Google Scholar
Alves, Amanda M., Brousseau, Eric, Mimouni, Nada, and Yeung, Timothy Yu-Cheong. 2019. “Competing for Policy: Lobbying in the EU Wholesale Roaming Regulation.” Working Paper.Google Scholar
Ansolabehere, Stephen, de Figueiredo, John M., and Snyder, James Jr. 2003. “Why Is There so Little Money in U.S. Politics?” The Journal of Economic Perspectives 17 (1): 105–30.10.1257/089533003321164976CrossRefGoogle Scholar
Barney, Jay. 1986. “Strategic Factor Markets: Expectations, Luck, and Business Strategy.” Management Science 32 (10): 1231–41.10.1287/mnsc.32.10.1231CrossRefGoogle Scholar
Barney, Jay. 1991. “Firm Resources and Sustained Competitive Advantage.” Journal of Management 17 (1): 99–120.10.1177/014920639101700108CrossRefGoogle Scholar
Baron, David. 1999. “Integrated Market and Nonmarket Strategies in Client and Interest Group Politics.” Business & Politics 1 (1): 7.10.1515/bap.1999.1.1.7CrossRefGoogle Scholar
Baron, David. 2013. Business and Its Enviroments, seventh edition. Pearson Prentice Hall.Google Scholar
Bernhagen, Patrick, and Mitchell, Neil J.. 2009. “The Determinants of Direct Corporate Lobbying in the European Union.” European Union Politics 10 (2): 155–76.10.1177/1465116509103366CrossRefGoogle Scholar
Bonardi, Jean Philippe. 2011. “Corporate Political Resources and the Resource-Based View of the Firm.” Strategic Organization 9 (3): 247–55.10.1177/1476127011417926CrossRefGoogle Scholar
Bonardi, Jean Philippe, Holburn, Guy, and Vanden Bergh, Richard G.. 2006. “Nonmarket Strategy Performance: Evidence From U. S. Electric Utilities.” Academy of Management Journal 49 (6): 1209–28.10.5465/amj.2006.23478676CrossRefGoogle Scholar
Bonardi, Jean Philippe, and Vanden Bergh, Richard G.. 2015. “Integrated Market and Nonmarket Strategy: Political Knowledge and the Resource-Based View of the Firm.” In The Routledge Companion to Non-Market Strategy, edited by Lawton, Thomas C. and Rajwani, Tazeeb, first edition. New York: Routledge Taylor Francis Group.Google Scholar
Bouwen, Pieter. 2002. “Corporate Lobbying in the European Union: The Logic of Access.” Journal of European Public Policy 9 (3): 365–90.10.1080/13501760210138796CrossRefGoogle Scholar
Coen, David. 1998. “The European Business Interest and the Nation State: Large-Firm Lobbying in the European Union and Member States.” Journal of Public Policy 18 (1): 75–100.10.1017/S0143814X9800004XCrossRefGoogle Scholar
Coen, David. 2009. “Business Lobbying in the European Union.” In Lobbying the European Union: Institutions, Actors and Issues, edited by David Coen and Jeremy Richardson. Oxford: Oxford University Press.Google Scholar
Coen, David, and Katsaitis, Alexander. 2013. “Chameleon pluralism in the EU: an empirical study of the European Commission interest group density and diversity across policy domains.” Journal of European Public Policy 20 (8): 1104–19.10.1080/13501763.2013.781785CrossRefGoogle Scholar
Coen, David, and Katsaitis, Alexander. 2015. “Institutional and Constitutional Aspects of Special Interest Representation.” Vol. 1.Google Scholar
Coen, David, and Richardson, Jeremy. 2009. “Learning to Lobby the European Union: 20 Years of Change.” In Lobbying the European Union: Institutions, Actors and Issues, first edition, edited by Coen, David and Richards, Jeremy. Oxford: Oxford University Press.Google Scholar
Coen, David, and Vannoni, Matia. 2018. “The Strategic Management of Government Affairs in Brussels.” Business & Society: 1–30.Google Scholar
Dahan, Nicolas. 2005. “A contribution to the conceptualization of political resources utilized in corporate political action.” Journal of Public Affairs: An International Journal 5 (1): 43–54.10.1002/pa.4CrossRefGoogle Scholar
de Figueiredo, John M. 2009. “Integrated Political Strategy.” Advances in Strategic Management 26: 459–86.10.1108/S0742-3322(2009)0000026017CrossRefGoogle Scholar
de Figueiredo, John M., and Kim, James J.. 2004. “When Do Firms Hire Lobbyists? The Organization of Lobbying at the Federal Communications Commission.” Industrial and Corporate Change 13 (6): 883–900.10.1093/icc/dth035CrossRefGoogle Scholar
de Figueiredo, John M., and Silverman, Brian S.. 2006. “Academic Earmarks and the Returns to Lobbying.” The Journal of Law & Economics 49 (2): 597–625.10.1086/508248CrossRefGoogle Scholar
de Figueiredo, John M., and Tiller, Emerson H.. 2001. “The Structure and Conduct of Corporate Lobbying: How Firms Lobby the Federal Communications Commission.” Journal of Economics & Management Strategy 10 (1): 91–122.10.1162/105864001300122566CrossRefGoogle Scholar
de Figueiredo, Rui J.P. Jr., and Edwards, Geoff. 2007. “Does Private Money Buy Public Policy? Campaign Contributions and Regulatory Outcomes in Telecommunications.” Journal of Economics & Management Strategy 16 (3): 547–76.10.1111/j.1530-9134.2007.00150.xCrossRefGoogle Scholar
Dorobantu, Sinziana, Kaul, Aseem, and Zelner, Bennet. 2017. Nonmarket strategy research through the lens of new institutional economics: An integrative review and future directions. Strategic Management Journal 38 (1): 114–40.10.1002/smj.2590CrossRefGoogle Scholar
Ehrlich, Sean, and Jones, Eryn. 2016. “Whom Do European Corporations Lobby? The Domestic Institutional Determinants of Interest Group Activity in the European Union” 18 (4): 467–88.CrossRefGoogle Scholar
Eising, Rainer. 2007. “The Access of Business Interests to EU Institutions: Towards Élite Pluralism?” Journal of European Public Policy 14 (February 2015): 384–403.10.1080/13501760701243772CrossRefGoogle Scholar
European Commission. 2014. “Commission Decision of the Publication of Information on Meetings Held between Members of the Commission and Organisations or Self-Employed Individuals.” Official Journal of the European Union. Strasbourg, France.Google Scholar
Hadani, Michael, and Schuler, Douglas. 2013. “In Search of El Dorado: The Elusive Financial Returns on Corporate Political Investments.” Strategic Management Journal 34: 165–81.10.1002/smj.2006CrossRefGoogle Scholar
Hermansson, Henrik. 2016. “The European Commission's Environmental Stakeholder Consultations: Is Lobbying Success Based on What You Know, What You Own or Who You Know?” Interest Groups & Advocacy 31: 1–31.Google Scholar
Hilbe, Joseph. 2011. Negative Binomial Regression, second edition. Cambridge: Cambridge University Press.10.1017/CBO9780511973420CrossRefGoogle Scholar
Hillman, Amy. 2003. “Determinants of Political Strategies in U.S. Multinationals.” Business & Society 42 (4): 455–84.10.1177/0007650303260351CrossRefGoogle Scholar
Hillman, Amy, Zardkoohi, Asghar, and Bierman, Leronard. 1999. “Corporate Political Strategies and Firm Performance: Indications of Firm-Specific Benefits.” Strategic Management Journal 20 (1): 67–81.10.1002/(SICI)1097-0266(199901)20:1<67::AID-SMJ22>3.0.CO;2-T3.0.CO;2-T>CrossRefGoogle Scholar
Hillman, Amy, and Hitt, Michael. 1999. “Corporate Political Strategy Formulation: A Model of Approach, Participation, and Strategy Decisions.” The Academy of Management Review 24 (4): 825–42.10.5465/amr.1999.2553256CrossRefGoogle Scholar
Hix, Simon. 2011. The Political System of the European Union, third edition. New York: Palgrave MacMillan.10.1007/978-0-230-34418-1CrossRefGoogle Scholar
Holburn, Guy, and Bergh, Richard Vanden. 2014. “Integrated Market and Nonmarket Strategies: Political Campaign Contributions around Merger and Acquisition Events in the Energy Sector.” Strategic Management Journal 35 (3): 450–60.10.1002/smj.2096CrossRefGoogle Scholar
Jia, Nan, and Mayer, Kyle. 2016. “Complementarity in Firms’ Market and Political Capabilities: An Integrated Theoretical Perspective.” In Strategy Beyond Markets (Advances in Strategic Management, vol. 34, edited by de Figueiredo, John M., Lenox, Michael, Oberholzer-Gee, Felix, and Vanden Bergh, Richard G.. Bingley, United Kingdom: Emerald Group Publishing Limited.Google Scholar
Kluver, Heike. 2011. “The Contextual Nature of Lobbying: Explaining Lobbying Success in the European Union.” European Union Politics 12 (4): 483–506.10.1177/1465116511413163CrossRefGoogle Scholar
Kluver, Heike. 2013. Lobbying in the European Union: Interest Groups, Lobbying Coalitions, and Policy Change. Oxford: Oxford University Press.10.1093/acprof:oso/9780199657445.001.0001CrossRefGoogle Scholar
Lupia, Arthur, and McCubbins, Mathew. 1998. The Democratic Dilemma: Can Citizens Learn What They Need to Know?, first edition. Cambridge: Cambridge University Press.Google Scholar
Mahoney, Christine. 2008. Brussels versus the Beltway: Advocacy in the United States and the European Union. Washington, D.C.: Georgetown University Press.Google Scholar
McKay, Amy M. 2011. “The decision to lobby bureaucrats.” Public choice 147 (1–2), 123–38.CrossRefGoogle Scholar
McKay, Amy, and Yackee, Susan Webb. 2007. “Interest group competition on federal agency rules.” American Politics Research 35.3 (2007): 336–57.10.1177/1532673X06296571CrossRefGoogle Scholar
North, Douglass. 1990. Institutions, Institutional Change and Economic Performance. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
Nugent, Neil. 2017. The government and politics of the European Union, eighth edition. New York: Palgrave.10.1057/978-1-137-45410-2CrossRefGoogle Scholar
Oliver, Christine, and Holzinger, Ingo. 2008. “The Effectiveness of Strategic Political Management: A Dynamic Capabilities Framework.” Academy of Management Review 33 (2): 496–520.CrossRefGoogle Scholar
Rival, Madina. 2012. “Are Firms’ Lobbying Strategies Universal? Comparison of Lobbying by French and UK Firms.” Journal of Strategy and Management 5 (2): 211–30.CrossRefGoogle Scholar
Schuler, Douglas, and Rehbein, Kathleen. 1997. “The filtering role of the firm in corporate political involvement.” Business & Society 36.2 : 116–39.CrossRefGoogle Scholar
Schuler, Douglas, and Rehbein, Kathleen. 2011. “Determinants of Access to Legislative and Executive Branch Officials: Business Firms and Trade Policymaking in the U.S. Determinants of Access to Legislative and Executive Branch Officials: Business Firms and Trade Policymaking in the U.S.” Business and Politics 13 (3).CrossRefGoogle Scholar
Schuler, Douglas A, Rehbien, Kathleen, and Cramer, Roxy D.. 2002. “Pursuing Strategic Advantage through Political Means: A Multivariate Approach.” The Academy of Management Journal 45 (4): 659–72.Google Scholar
Vannoni, Matia. 2012. “The Determinants of Direct Corporate Lobbying in the EU: A Multi-Dimensional Proxy of Corporate Lobbying.” Interest Groups & Advocacy 2 (1): 71–90.CrossRefGoogle Scholar
Wernerfelt, Birger. 1984. “A Resource-Based View of the Firm.” Strategic Management Journal 5 (2): 171–80.CrossRefGoogle Scholar
West, William F. 2004. “Formal procedures, informal processes, accountability, and responsiveness in bureaucratic policy making: An institutional policy analysis.” Public Administration Review 64 (1): 66–80.CrossRefGoogle Scholar
West, William F., and Raso, Connor. 2012. “Who shapes the rulemaking agenda? Implications for bureaucratic responsiveness and bureaucratic control.” Journal of Public Administration Research and Theory 23 (3): 495–519.CrossRefGoogle Scholar
Winkelmann, Rainer. 2008. Econometric Analysis of Count Data. New York: Springer.Google Scholar
Yackee, Susan Webb. 2006. “Assessing inter-institutional attention to and influence on government regulations.” British Journal of Political Science 36 (4): 723–44.CrossRefGoogle Scholar
Yackee, Jason Webb, and Yackee, Susan Webb. 2006. “A bias towards business? Assessing interest group influence on the US bureaucracy.” The Journal of Politics 68 (1): 128–39.CrossRefGoogle Scholar