Session 220

Political Strategies in Transition Contexts

Track A

Date: Monday, October 8, 2012


Time: 09:30 – 10:45


Room: Meeting Hall IV (b)

Session Chair:

  • Witold Henisz, University of Pennsylvania

Title: Dining and Drinking with Government Officials: Organizational and Environmental Determinants of Political Networking during Transition


  • Pei Sun, Fudan University
  • Jianjun Zhang, Peking University
  • Kamel Mellahi, University of Warwick

Abstract: Drawing upon resource dependence theory and new institutionalism literature, this paper develops hypotheses on how corporate political networking varies with organizational size and the quality of firms’ local business and institutional environments alongside the deepening of institutional transition in emerging economies. These hypotheses are tested through a unique survey dataset containing the percentage of business entertainment expenses spent on government officials in two groups of Chinese private enterprises in years 2004 and 2009. The results suggest that, in the course of transition, strong isomorphic pressures of networking with government officials implied by new institutionalism in organization theory are increasingly giving way to behavioral patterns dictated by the logics of resource dependence and the rational choice variant of new institutionalism.

Title: Does Grease Money Buy Infleunce Rent? Bribery and Firm Performance in Africa and Latin America


  • Addis Gedefaw Birhanu, EMLyon Business School

Abstract: Firm short term performance in developed economies, little is known about the mechanisms firms employ in developing economies to influence corrupt governments.Specifically, firms’ political activity to manipulate or bend existing rules and its implication on firm performances is virtually unexplored. By using theoretical insights from political strategy literature, we investigate the determinants and consequences of bribery on firms’ long and short term performances in countries where corruption is pervasive. We find that bribery increases firms’ likelihood of accessing resources from governments but deters firms’ long term growth and investment. The negative effect of bribe on growth is more severe in countries where the rule of law and administration is less efficient.

Title: Effect of Government Legitimacy on MNE – Host Country Government Political Strategies in Transitional Contexts


  • Izzet Sidki Darendeli, California State University, East Bay
  • TL Hill, Temple University

Abstract: This paper investigates the effect of government legitimacy on MNEs’ choices about how to interact with a host-country government, especially in transitional contexts. We use Libya, Turkey and Greece as study contexts because in these cases, regime/government change or a financial crisis created a natural experiment that offers insight into the effectiveness of various kinds of political strategies in times of transition. In particularly, we explore the impact on performance, license to operate and license to stay of both government relations and broader attempts to foster legitimacy in the eyes of citizens.

Title: Gaming the Rules and Ruling the Game: Strategic Innovativeness in the Field of Haute Cuisine


  • Jochen Koch, European University Viadrina Frankfurt
  • Wasko Rothmann, McKinsey & Company
  • Natalie Senf, European University Viadrina

Abstract: Strategic innovativeness, which has become a key factor of long-term success in many industries, requires space for creative action. This space however is dependent upon the institutional context in which the firms are embedded. The question is to what extend firms themselves (can) shape the background against which they are evaluated as in gaming the rules before they are ruled by the game. This paper investigates this by looking at strategic innovativeness and its evaluation in the field of haute cuisine. We will show that the rules are not as concise as one would expect and are individually rather shaped in an interactive context of profiling.

All Sessions in Track A...

Mon: 08:00 – 09:15
Session 147: Emerging Market Firms and Complex Institutional Environments
Mon: 09:30 – 10:45
Session 220: Political Strategies in Transition Contexts
Mon: 13:30 – 14:45
Session 221: National Institutions and Firm Behavior
Mon: 16:30 – 17:45
Session 154: Embeddedness, Networks and Non-Market Strategies
Tue: 08:00 – 09:15
Session 153: Cognition, Bounded Rationality and Strategy
Tue: 11:00 – 12:15
Session 151: Coevolution of Institutions and Firm Strategy
Session 152: Institutional Change and Innovation
Tue: 14:15 – 15:30
Session 155: Institutional Transitions and Internationalization Strategies
Tue: 15:45 – 17:00
Session 219: Strategic Responses to Institutional Change
Tue: 17:30 – 18:45
Session 150: Legitimacy, Liabilities and Institutions

Strategic Management Society