The Contingent Effect of Patriotic Rhetoric on Firm Performance

Alexander Mohr () and Christian Schumacher ()
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Alexander Mohr: Vienna University of Economics and Business, 1020 Wien, Austria
Christian Schumacher: Vienna University of Economics and Business, 1020 Wien, Austria

Strategy Science, 2019, vol. 4, issue 2, 94-110

Abstract: Drawing on resource-dependence logic, we frame a firm’s use of patriotic rhetoric as a strategy for absorbing external resource constraints. We argue that strong nationalist sentiment positively influences the performance effect of using patriotic rhetoric, whereas a firm’s involvement in overseas markets negatively influences this effect. To test our hypotheses, we capture U.S. firms’ patriotic rhetoric using earnings calls and press releases for 456 firms in the S&P 500 during the period 2002−2015. We find that the effect of using patriotic rhetoric on performance is more positive under conditions of high levels of nationalist sentiment in the home country and more negative for firms that are highly involved in overseas markets.

Keywords: patriotic rhetoric; nationalist sentiment; performance; resource dependence theory (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:inm:orstsc:v:4:y:2019:i:2:p:94-110

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