THE MAKE AND/OR BUY DECISIONS OF CORPORATE POLITICAL LOBBYING: INTEGRATING THE ECONOMIC EFFICIENCY AND LEGITIMACY PERSPECTIVES

• 成果类型: Article
• 署名作者: Jia, Nan
• 署名单位: University of Southern California
• 刊物名称: ACADEMY OF MANAGEMENT REVIEW
• ISSN/ISSBN: 0363-7425
• DOI: 10.5465/amr.2016.0148
• 发表日期: 2018
• 页码: 307-326
• 关键词: firm; strategy; performance; reputation; PARTICIPATION; ORGANIZATION; governance; management; benefits; MARKET

摘要

In this article I examine political lobbying and investigate firms' decisions to employ internal functionalities (i.e., to make or insource), to contract with external professionals (i.e., to buy or outsource), or to do both (i.e., to make and buy or plural source). I first develop an integrated framework based on the twin perspectives of economic efficiency and legitimacy. When the political audience faces little uncertainty about lobbying content, firms make sourcing decisions to maximize economic efficiency in producing such content in line with transaction cost economics and the capabilities view. However, when the political audience faces substantial uncertainty about lobbying content, it relies on the perceived legitimacy of the lobbying entity to draw inferences about the quality of such content; therefore, the legitimacy of a potential lobbying entity matters to firms making sourcing decisions related to lobbying. I then connect firms' sourcing decisions with several concrete characteristics of lobbying entities that can affect political audiences' judgment regarding their legitimacy. Finally, I examine the tension that develops when legitimacy and economic efficiency considerations call for different forms of sourcing, as well as how complementarities in plural sourcing help resolve this tension in certain situations.