Session 412

Public-Private Relationships and Politics

Track D

Date: Monday, September 22, 2014


Time: 11:00 – 12:15


Room: Paris

Session Chair:

  • Aaron Hill, Oklahoma State University

Title: Business Clubs: Explaining Firms’ Engagement in Collective-Goods Provision


  • Luis Ballesteros, University of Pennsylvania

Abstract: I propose a theoretical argument that aims at explaining firms’ provision of collective goods, like disaster relief. By virtue of their direct economic affiliation with geographical communities, firms become members of market systems. For member firms, goods that benefit the system are considered club goods; for non-member firms, they are public goods. Member firms’ income is a function of club goods—to which only members own consumption rights. Therefore, as members of club-goods systems, firms face a higher incentive to donate than in public-good settings. I use unique data of corporate donations to 159 disasters that affected different countries in the period 2000-2013 and a panel of 2011 multinational enterprises from 61 countries. The preliminary analyses show that firms with direct economic affiliation are significantly more likely to become collective-good providers than firms with no affiliation.

Title: Explicit and Implicit Political Relationships: The Impact of Corporate Political Investments and Congressional Stock Ownership on Firm Performance


  • Jason Ridge, University of Arkansas
  • Aaron Hill, Oklahoma State University
  • Joseph Kim, University of New South Wales

Abstract: Much of the research focusing on government and firm relationships seeks to determine whether corporate political investments (CPI) provide positive results for firm performance. However, this is but one, explicit, manner in which relationships are developed between Congressional members and firms. Relationships are also developed through implicit manners, such as Congressional stock ownership. We argue that the same self-interested tendencies that are suggested to benefit firms through CPI also occur due to Congressional self-interest in their personal stock holdings. We find that Congressional members stock ownership is positively related to firm performance and that this relationship has greater impact than CPI on firm performance. We also find that ownership by influential Congressional members (i.e., majority party or ranking members) is positively related to firm performance.

Title: Stakeholder Coalitions and Social Media-Driven Advocacy


  • Walid Shibib, University of Geneva
  • Emmanuel Josserand, University of Technolgy Sydney

Abstract: How does Social Media (SM) impact the Stakeholder Theory and the stakeholder environment of organizations? This paper focuses on stakeholder coalitions and SM-driven social movements. Organized resistance and mounted pressure, which disrupt corporations’ activities and oblige change, are a growing threat and challenge to the classical governance of firms. We will look at how SM affects the way advocacy actors interact and how they harness public interest to achieve this. The proposed research will explore how and why advocacy activism works on a large, transnational scale in the digital sphere. Special attention will be given to coalitions that overcome the organizational boundaries of the various actors in order to make their interests heard.

Title: The Double-Edged Sword of Public-Private Partnerships: Value Creation and Value Capture across Sector Boundaries


  • Aline Gatignon, University of Pennsylvania

Abstract: This paper examines how firms can both create and capture value from their partnerships with non-profit organizations. It asks how and what their employees can learn from participating in public-private partnerships, and under what conditions they can extract the benefits for their core operations ex post. The paper is grounded in research on alliances, organizational logics and learning. It draws on archival and survey data on a 10-year partnership between TNT and the United Nations World Food Program. The core finding is that extensive interaction between partners can lead employees to develop exploratory knowledge and skills that are far removed from the firm’s traditional knowledge base, but which can be difficult to reintegrate into its core operations when they return to their usual job functions.

All Sessions in Track D...

Mon: 08:00 – 09:15
Session 413: CSR and Diversity
Mon: 11:00 – 12:15
Session 412: Public-Private Relationships and Politics
Mon: 14:45 – 16:00
Session 414: Global Networks and Business Groups
Mon: 16:30 – 17:45
Session 411: Ownership and Governance
Tue: 08:00 – 09:15
Session 410: Governance Relationships
Tue: 17:15 – 18:30
Session 415: Small Firms in a Networked Environment

Strategic Management Society