Complementarity in Firms’ Market and Political Capabilities: An Integrated Theoretical Perspective

Abstract

We examine how a firm’s market-oriented capabilities (in areas such as R&D or marketing) and consumer focus foster its effectiveness in pursuing political activities. We then explore the sustainability of any advantage that firms may gain from their political actions. We develop a conceptual framework to propose that a firm’s political capabilities to implement different political tactics, such as information provision and constituency building, are a product of how related the tactics are to different market capabilities and the type of customers that the firm serves. Finally, we propose that the integration of market strategies and political strategies provides new insight into the sustainability of the advantages that a firm might gain through political activities.

Keywords: Market Capabilities, Political Capabilities, Complementarity, Customer Focus, Political Tactics, Sustainable Advantage