The Structure of Political Institutions and Effectiveness of Corporate Political Lobbying

TitleThe Structure of Political Institutions and Effectiveness of Corporate Political Lobbying
Publication TypeJournal Article
Year of Publication2015
AuthorsChoi S-J, Jia N, Lu J
JournalOrganization Science
Volume26
Issue1
Pagination158-179
Date PublishedJan-Feb
ISBN Number1047-7039
Accession NumberWOS:000349548000010
Abstract

This paper investigates how the structure of political institutions influences the effectiveness of corporate political lobbying by shaping the "veto points" and "entry points" that lobbying firms encounter and require, respectively, when attempting to influence public policies; in so doing, this study deepens our understanding of the strategic implications of institutional environments. Using large-sample and cross-country firm-level data, we find that the influence of firms' lobbying activities on public policies is weakened when there are tighter constraints generated as a result of greater political (partisan) competition and more subnational government tiers. We find that the negative association between the effectiveness of lobbying and political (partisan) competition is particularly pronounced in countries with lower electoral accountability and that the negative association between the effectiveness of lobbying and subnational government tiers is particularly pronounced in more centralized political systems.

DOI10.1287/orsc.2014.0936