The extant literature argues that nonmarket strategies can establish, sustain, or enhance a firm’s competitive advantage. Less clear is how and why effective nonmarket strategies influence a firm’s competitiveness. Moreover, the extant literature tends to examine the two building blocks of nonmarket strategy—corporate social responsibility (CSR) and corporate political activity (CPA)—separately. In this article, we extend trust to the nonmarket environment. We analyze how CSR and CPA complement each other to create strong trust between firms and the polity, and how they consequently influence government policy. We show the mediating role of trust in policy influence, and argue that CSR and CPA should be aligned for the successful influence of salient government policy.
- corporate political activity
- corporate social responsibility
- policy influence
ASJC Scopus subject areas
- Arts and Humanities (miscellaneous)
- Applied Psychology
- Organizational Behavior and Human Resource Management
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- Management - Senior Lecturer (Associate Professor)
- Strategy & Organisation
- Centre for Business, Organisations and Society (CBOS)
Person: Research & Teaching