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

Advances in Strategic Management, Forthcoming

Marshall School of Business Working Paper No. MOR 02.16

43 Pages Posted: 24 Jun 2015 Last revised: 12 Apr 2016

See all articles by Nan Jia

Nan Jia

University of Southern California - Marshall School of Business

Kyle Mayer

University of Southern California - Management and Organization Department

Date Written: June 22, 2015

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

Suggested Citation

Jia, Nan and Mayer, Kyle, Complementarity in Firms’ Market and Political Capabilities: An Integrated Theoretical Perspective (June 22, 2015). Advances in Strategic Management, Forthcoming; Marshall School of Business Working Paper No. MOR 02.16. Available at SSRN: https://ssrn.com/abstract=2621787

Nan Jia (Contact Author)

University of Southern California - Marshall School of Business ( email )

701 Exposition Blvd
Los Angeles, CA 90089
United States

Kyle Mayer

University of Southern California - Management and Organization Department ( email )

Los Angeles, CA 90089
United States

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