Cross-border political ties: foreign firms' campaign contributions and the crowding out of domestic competitors

• 成果类型: Article
• 署名作者: Ayyagari, Meghana; Knill, April; Syvrud, Kelsey
• 署名单位: George Washington University; University of South Carolina System; University of South Carolina Columbia; State University System of Florida; Florida State University
• 刊物名称: JOURNAL OF INTERNATIONAL BUSINESS STUDIES
• ISSN/ISSBN: 0047-2506
• DOI: 10.1057/s41267-024-00734-2
• 发表日期: 2024
• 页码: 1108-1127
• 关键词: political connections; International; Cross-border; Firm value; procurement contracts; Bipartisan Campaign Reform Act; Crowding out

摘要

A substantial body of literature has shown that political connections have benefited firms domestically, but their cross-border value for multinational enterprises (MNEs) remains understudied. This paper provides novel evidence on the strategic advantages MNEs gain through political ties in host countries and the consequences for domestic firms. Examining foreign companies' contributions to US political campaigns through political action committees (PACs) sponsored by their US subsidiaries, we find that contributing foreign firms win significantly more U.S. government contracts than non-contributing foreign firms. Crucially, this increased access for foreign contributing firms crowds out government contract allocation to similar domestic firms that do not make political donations, even in regulated industries favoring domestic suppliers. Our findings demonstrate that MNEs can effectively leverage political connections as a non-market strategy to gain preferential treatment over local competitors in a host nation. However, these cross-border political ties come at the expense of domestic firms' competitiveness, informing policy debates around restricting foreign corporate influence in domestic elections. From a managerial perspective, our findings suggest that strategic political ties are an important consideration for MNEs alongside traditional location factors when evaluating foreign investment decisions and navigating institutional complexities abroad. Une abondante litt & eacute;rature a montr & eacute; que les liens politiques avaient profit & eacute; aux entreprises au niveau domestique. Reste pourtant peu & eacute;tudi & eacute;e leur valeur transfrontali & egrave;re pour les entreprises multinationales (Multinational Enterprises - MNEs). Cet article apporte de nouveaux & eacute;l & eacute;ments li & eacute;s aux avantages strat & eacute;giques que les MNEs tirent de leurs liens politiques dans les pays d'accueil et aux cons & eacute;quences pour les entreprises domestiques. En examinant les contributions des entreprises & eacute;trang & egrave;res aux campagnes politiques am & eacute;ricaines par le biais de comit & eacute;s d'action politique (political action committees - PACs) parrain & eacute;s par leurs filiales am & eacute;ricaines, nous constatons que les entreprises & eacute;trang & egrave;res contributrices remportent beaucoup plus de contrats du gouvernement am & eacute;ricain que les entreprises & eacute;trang & egrave;res non-contributrices. Il est essentiel de noter que cet acc & egrave;s accru des entreprises & eacute;trang & egrave;res contributrices & eacute;vince l'attribution de contrats gouvernementaux & agrave; des entreprises domestiques similaires qui ne font pas de dons politiques, et ce m & ecirc;me dans les secteurs r & eacute;glement & eacute;s qui favorisent les fournisseurs domestiques. Nos r & eacute;sultats d & eacute;montrent que les MNEs peuvent exploiter efficacement leurs relations politiques comme strat & eacute;gie non marchande pour obtenir un traitement pr & eacute;f & eacute;rentiel par rapport & agrave; leurs concurrents locaux dans un pays d'accueil. Toutefois, ces liens politiques transfrontaliers se font au d & eacute;triment de la comp & eacute;titivit & eacute; des entreprises domestiques, ce qui alimente les d & eacute;bats politiques sur la restriction de l'influence des entreprises & eacute;trang & egrave;res dans les & eacute;lections nationales. D'un point de vue manag & eacute;rial, nos r & eacute;sultats sugg & egrave;rent que les liens politiques strat & eacute;giques constituent pour les MNEs un facteur important & agrave; prendre en compte, au m & ecirc;me titre que les facteurs de localisation traditionnels, et ce lorsqu'elles & eacute;valuent les d & eacute;cisions d'investissement & eacute;tranger et qu'elles naviguent dans les complexit & eacute;s institutionnelles & agrave; l'international. Una amplia literatura ha demostrado que las conexiones pol & iacute;ticas han beneficiado a las empresas a nivel nacional, pero su valor transfronterizo para las empresas multinacionales (MNEs por sus iniciales em ingl & eacute;s) sigue siendo poco estudiado. Este art & iacute;culo proporciona evidencia novedosa sobre las ventajas estrat & eacute;gicas que obtienen las empresas multinacionales a trav & eacute;s de v & iacute;nculos pol & iacute;ticos en los pa & iacute;ses anfitriones y las consecuencias para las empresas nacionales. Al examinar las contribuciones de las empresas extranjeras a las campa & ntilde;as pol & iacute;ticas estadounidenses a trav & eacute;s de comit & eacute;s de acci & oacute;n pol & iacute;tica (PAC por sus iniciales en ingl & eacute;s) patrocinados por sus subsidiarias estadounidenses, encontramos que las empresas extranjeras que contribuyen obtienen significativamente m & aacute;s contratos con el gobierno estadounidense que las empresas extranjeras que no contribuyen. Fundamentalmente, este mayor acceso para las empresas contribuyentes extranjeras desplaza la asignaci & oacute;n de contratos gubernamentales a empresas nacionales similares que no hacen donaciones pol & iacute;ticas, incluso en industrias reguladas que favorecen a los proveedores nacionales. Nuestros hallazgos demuestran que las empresas multinacionales pueden aprovechar eficazmente las conexiones pol & iacute;ticas como una estrategia no comercial para obtener un trato preferencial sobre los competidores locales en una naci & oacute;n anfitriona. Sin embargo, estos v & iacute;nculos pol & iacute;ticos transfronterizos se producen a expensas de la competitividad de las empresas nacionales, lo que informa los debates pol & iacute;ticos sobre la restricci & oacute;n de la influencia corporativa extranjera en las elecciones nacionales. Desde una perspectiva gerencial, nuestros hallazgos sugieren que los v & iacute;nculos pol & iacute;ticos estrat & eacute;gicos son una consideraci & oacute;n importante para las empresas multinacionales, junto con los factores de ubicaci & oacute;n tradicionales, al evaluar las decisiones de inversi & oacute;n extranjera y navegar por las complejidades institucionales en el extranjero. Uma extensa literatura mostrou que conex & otilde;es pol & iacute;ticas t & ecirc;m beneficiado empresas domesticamente, mas seu valor transfronteiri & ccedil;o para empresas multinacionais (MNEs) continua pouco estudado. Este artigo oferece novas evid & ecirc;ncias sobre as vantagens estrat & eacute;gicas que MNEs obt & ecirc;m por meio de la & ccedil;os pol & iacute;ticos em pa & iacute;ses anfitri & otilde;es e as consequ & ecirc;ncias para empresas dom & eacute;sticas. Ao examinar contribui & ccedil;& otilde;es de empresas estrangeiras para campanhas pol & iacute;ticas nos EUA por meio de comit & ecirc;s de a & ccedil;& atilde;o pol & iacute;tica (PACs) patrocinados por suas subsidi & aacute;rias americanas, encontramos que empresas estrangeiras contribuidoras ganham significativamente mais contratos do governo americano do que empresas estrangeiras que n & atilde;o contribuem. Notadamente, esse acesso ampliado para empresas estrangeiras contribuidoras retira a aloca & ccedil;& atilde;o de contratos do governo para empresas dom & eacute;sticas similares que n & atilde;o fazem doa & ccedil;& otilde;es pol & iacute;ticas, mesmo em ind & uacute;strias reguladas que favorecem fornecedores dom & eacute;sticos. Nossos achados demonstram que MNEs podem efetivamente alavancar conex & otilde;es pol & iacute;ticas como uma estrat & eacute;gia de n & atilde;o-mercado para obter tratamento preferencial em rela & ccedil;& atilde;o a concorrentes locais em uma na & ccedil;& atilde;o anfitri & atilde;. No entanto, esses la & ccedil;os pol & iacute;ticos transfronteiri & ccedil;os ocorrem & agrave;s custas da competitividade de empresas dom & eacute;sticas, alimentando debates pol & iacute;ticos sobre a restri & ccedil;& atilde;o da influ & ecirc;ncia corporativa estrangeira em elei & ccedil;& otilde;es dom & eacute;sticas. Sob uma perspectiva de gest & atilde;o, nossos achados sugerem que la & ccedil;os pol & iacute;ticos estrat & eacute;gicos s & atilde;o uma considera & ccedil;& atilde;o importante para MNEs, juntamente com fatores tradicionais de localiza & ccedil;& atilde;o, ao avaliar decis & otilde;es de investimento estrangeiro e navegar por complexidades institucionais no exterior. (sic)(sic)(sic)(sic)(sic)(sic), (sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic), (sic)(sic)(sic)(sic)(sic)(sic)(sic) (MNE) (sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic). (sic)(sic)(sic)(sic)(sic)(sic)(sic)MNE(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic).(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(PAC)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic), (sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic).(sic)(sic)(sic)(sic)(sic)(sic), (sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic), (sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic).(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic), MNE(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic), (sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic).(sic)(sic), (sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic), (sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic).(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic), (sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic), (sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic), (sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic), (sic)MNE(sic)(sic)(sic)(sic)(sic)(sic)(sic).