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Managing political pressure - small firms strategies for resource allocation in networks

Firouze Pourmand Hilmersson

International Journal of Business Environment, 2015, vol. 7, issue 2, 151-167

Abstract: This paper investigates how small firms develop political strategies in response to coercive political initiatives. Extant literature has mainly focused on large firms and assumed that small firms are passive adopters of coercive political initiatives. The paper is based on business network theory which is integrated with theory on corporate political strategy. The analytical framework is built around three concepts: political commitments, political knowledge and legitimacy. This framework is used to understand how small firms take strategic political action to change coercive initiatives into support for their businesses. A case from the European agricultural sector shows that instead of passive adaptive behaviour, small firms can influence coercive political initiatives. These findings come with implications for further research and for managers of small firms.

Keywords: small firms; mobilisation; corporate political strategy; network; political knowledge; political commitments; legitimacy; institutional pressure; political pressure; resource allocation; business networks; coercive political initiatives; Europe; agricultural industry; agriculture. (search for similar items in EconPapers)
Date: 2015
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