CAOT 31 Lecture Notes - Lecture 10: Capability Approach, Policy, Stakeholder Management
3 Oct 2020
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Document Summary
The effectiveness of strategic political management: a dynamic capabilities framework . Aim of paper: adopt a firm-level dynamic capability approach to corporate political activity to explain the strategies firms use to influence the political environment and the conditions under which these strategies are likely to be effective. Strategic political management: set of strategic actions that firms plan and enact to maximize economic return from the political environment. Political tactics: lobbying, advocacy advertising, constituency building, financial contributions and coalition formation. Value creation: invention or reconfiguration of firm assets or competencies that constitute and original or unique addition to firm rents. Value maintenance: preservation of those form assets and competencies that constitute the foundation of firm rents. As political environment becomes more complex and influential, firms that engage in political strategies more likely to strengthen competitive advantage than passive or inactive ones.
