Managing political pressure - small firms strategies for resource allocation in networks
by Firouze Pourmand Hilmersson
International Journal of Business Environment (IJBE), Vol. 7, No. 2, 2015

Abstract: This paper investigates how small firms develop political strategies in response to coercive political initiatives. Extant literature has mainly focused on large firms and assumed that small firms are passive adopters of coercive political initiatives. The paper is based on business network theory which is integrated with theory on corporate political strategy. The analytical framework is built around three concepts: political commitments, political knowledge and legitimacy. This framework is used to understand how small firms take strategic political action to change coercive initiatives into support for their businesses. A case from the European agricultural sector shows that instead of passive adaptive behaviour, small firms can influence coercive political initiatives. These findings come with implications for further research and for managers of small firms.

Online publication date: Fri, 24-Apr-2015

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