Pursuing Strategic Advantage Through Political Means: A Multivariate Approach

Abstract

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 tactics. Modeling the determinants of corporate political activity as a single, multivariate phenomenon, we demonstrate that politically active firms combine tactics. We also show that political activism, institutional features of Congress, firm size, government contracts, and industry concentration drive firms to use multiple political tactics.