Kathleen Rehbein

Pursuing Strategic Advantage Through Political Means: A Multivariate Approach

In a constantly changing business environment, firms with access to those who make public policy enjoy competitive advantage. To gain such access, politically active firms engage in a variety of ta...

Understanding Shareholder Activism: Which Corporations are Targeted?:

This study provides preliminary empirical evidence that shareholder activists target companies because of their size as well as specific stakeholder-related practices. The data show that shareholder activists target companies with shareholder resolutions demanding changes in corporate behaviors for companies producing problematic products and where environmental concerns exist. Furthermore, companies in specific industries are targeted based on poor employee and community-related practices. Activists, that is, are selective in their targeting of companies, choosing the most visible (largest) companies and those whose practices raise specific issues of interest to society.

Leaders, Followers, and Free Riders: An Empirical Test of Variation in Corporate Political Involvement

This study extended previous empirical work on corporate political activity by examining corporate involvement with the U.S. International Trade Commission. Our findings suggest that organizational...

Playing on Two Chessboards: Reputation Effects between Corporate Social Responsibility (CSR) and Corporate Political Activity (CPA)

It has recently been argued that corporate social responsibility (CSR) is ‘political’. It has been neglected however, that firms also operate politically in a traditional sense, in seeking to secure favourable political conditions for their businesses. We argue that there are potential synergies between CSR and corporate political activity (CPA) that are often overlooked by firms and that recognition of these synergies will stimulate firms to align their CSR and CPA. We develop a conceptual model that specifies how various configurations of a firms CSR and CPA – alignment, misalignment, and non-alignment – affect the firms reputation beyond the separate reputation effects of CSR and CPA. This model has important implications for understanding how and why firms should pay attention to their CPA and CSR configurations, and thereby contributes to the broader issue of why firms should make sure that they are consistent in terms of responding to stakeholder concerns.

Testing the Firm as a Filter of Corporate Political Action

This study tests an integrative model of corporate political action, the filter model, based on the behavioral theory of the firm. The filter model posits that external political, economic, and industry environments are mediated by organizational structures and resources to affect a firm’s political actions. The authors rate the filter model’s predictive power against that of an economic-based direct-effects model by examining the efforts of about 1,100 U.S.-domiciled manufacturing firms to influence trade policy. LISREL analysis demonstrates that the integrative filter model provides a superior explanation of corporate political action.

Playing on two chessboards

It has recently been argued that corporate social responsibility (CSR) is ‘political’. It has been neglected however, that firms also operate politically in a traditional sense, in seeking to secure favourable political conditions for their businesses. We argue that there are potential synergies between CSR and corporate political activity (CPA) that are often overlooked by firms and that recognition of these synergies will stimulate firms to align their CSR and CPA. We develop a conceptual model that specifies how various configurations of a firms CSR and CPA – alignment, misalignment, and non-alignment – affect the firms reputation beyond the separate reputation effects of CSR and CPA. This model has important implications for understanding how and why firms should pay attention to their CPA and CSR configurations, and thereby contributes to the broader issue of why firms should make sure that they are consistent in terms of responding to stakeholder concerns.

Fad and Fashion in Shareholder Activism: The Landscape of Shareholder Resolutions, 1988–1998

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Determining an Industry's Political Effectiveness with the U.S. International Trade Commission

This study extends previous empirical work on the payoffs associated with an industrys political investments by examining the political strategies and tactics employed by industries involved with the U.S. International Trade Commission (ITC). In using a comprehensive framework of regulatory decision making to analyze the ITCs decision-making process, the authors also find that industries facing relatively low costs of collective action are able to secure affirmative decisions from ITC commissioners.

Linking Corporate Community Programs and Political Strategies: A Resource-Based View

This article examines the relationship between an aspect of a firm’s corporate social responsibility (CSR), corporate community programs (CCPs), and the effectiveness of its corporate political activity (CPA). Developing a conceptual model based on resource-based view of the firm, the authors argue that the mechanism linking a firm’s CCP to CPA mechanism is the effect of CCPs on the development of firm level resources. Specifically, the intensity of a firm’s CCPs enhances a firm’s human capital, organizational capital, and geographic resources, which in turn improve the effectiveness of two key aspects of CPA: information and constituency-building political strategies. This linkage of CCPs to CPA effectiveness may be particularly relevant when the firm faces unfavorable political markets.

The Political Capital of Foreign Subsidiaries: An Exploratory Model

This article explores the concept of political capital in the setting of multinational corporation foreign subsidiaries. Drawing on resource dependence theory, the literature on corporate political activities, and the bargaining power framework, hypotheses are developed examining the antecedents to subsidiary political capital. The article tests hypotheses based on primary data from 91 foreign subsidiaries using path analysis. The empirical results suggest that both ownership of bargaining power resources and the management of those resources through government affairs activities are important in explaining the variation of political capital across foreign subsidiaries.