Disentangling the effects of domestic corporate political activity and political connections on firms’ internationalisation: Evidence from US retail MNEs

Vikrant Shirodkar, Georgios Batsakis, Palitha Konara, Alexander Mohr

Publication: Scientific journalJournal articlepeer-review

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.
Original languageEnglish
JournalInternational Business Review
Volume31
DOIs
Publication statusPublished - 2022

Austrian Classification of Fields of Science and Technology (ÖFOS)

  • 502052 Business administration
  • 502003 Foreign trade

Keywords

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

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