Balancing Social and Political Strategies in Emerging Markets: Evidence from India

Rekha Rao-Nicholson, Zaheer Khan, Svetla Trifonova Marinova

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

This article explores the substitution and complementary effects between political and social strategies on firm performance in the context of an emerging market (EM). Using in-depth, historical case-study approach, the article investigates how companies integrate political and social resources in this market. Corporate performance includes traditional measures such as accounting performance and nonfinancial measures like the ease of doing business. The study finds that social strategies are stronger enablers of firm long-term performance than political strategies. The latter have a short-term impact on performance, but their success over time is limited. The main drawback of reliance on political resources in EMs is the lack of political stability, fragmented polity, and weak political coalitions. We identify rather limited evidence of firms using these two strategies as complements. Thus, we suggest that firms should employ both these strategies in the EM.
Original languageEnglish
JournalBusiness Ethics: A European Review
Volume28
Issue number1
Pages (from-to)56
Number of pages70
ISSN0962-8770
DOIs
Publication statusPublished - 24 Jan 2019

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Emerging markets
Political strategy
India
Accounting performance
Corporate performance
Social resources
Resources
Political stability
Non-financial measures
Long-term performance
Enablers
Firm performance
Substitution
Performance measures

Cite this

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abstract = "This article explores the substitution and complementary effects between political and social strategies on firm performance in the context of an emerging market (EM). Using in-depth, historical case-study approach, the article investigates how companies integrate political and social resources in this market. Corporate performance includes traditional measures such as accounting performance and nonfinancial measures like the ease of doing business. The study finds that social strategies are stronger enablers of firm long-term performance than political strategies. The latter have a short-term impact on performance, but their success over time is limited. The main drawback of reliance on political resources in EMs is the lack of political stability, fragmented polity, and weak political coalitions. We identify rather limited evidence of firms using these two strategies as complements. Thus, we suggest that firms should employ both these strategies in the EM.",
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Balancing Social and Political Strategies in Emerging Markets: Evidence from India. / Rao-Nicholson, Rekha ; Khan, Zaheer; Marinova, Svetla Trifonova.

In: Business Ethics: A European Review, Vol. 28, No. 1, 24.01.2019, p. 56.

Research output: Contribution to journalJournal articleResearchpeer-review

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