To bribe or to convince? Political stakeholders and political activities in German multinational corporations |
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| Institution: | 1. University of Erlangen-Nuremberg, 90403 Nuremberg, Germany;2. University of Dortmund, Germany;1. Department of Business & Management, University of Sussex, UK;2. Department of Economics & Management, University of Pavia, Italy;1. Bahcesehir University, Department of International Trade and Business, Besiktas, Istanbul 34349, Turkey;2. Bahcesehir University, Department of Industrial Engineering, Besiktas, Istanbul 34349, Turkey;3. University of Salford, The Crescent, Salford, Manchester M5 4WT, United Kingdom;4. Strathclyde Business School, Department of Strategy and Organisation, University of Strathclyde, 199 Cathedral Street, Glasgow G4 0QU, United Kingdom;5. Warwick Business School, The University of Warwick, Coventry CV4 7AL, United Kingdom;1. WU Vienna, Institute for International Business, Welthandelsplatz 1, 1090 Vienna, Austria;2. Copenhagen Business School, Department of Strategic Management and Globalization, Kilevej 14, 2000 Frederiksberg, Denmark;1. Hankuk University of Foreign Studies, College of Business Administration, 270, Imun-dong, Dongdaemun-gu, Seoul, 130-791, South Korea;2. Manchester Metropolitan University Business School, All Saints Campus, Oxford Road, Manchester, M15 6BH, UK;1. Hankuk University of Foreign Studies, College of Business Administration, 270, Imun-dong, Dongdaemun-gu, Seoul 130-791, South Korea;2. King''s College London, Strand, London WC2R 2LS, UK |
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| Abstract: | In this paper, the relevance of political stakeholders and political activities in German multinational corporations (MNCs) is examined. The focus is on three main questions: First, which political stakeholders influence the behavior of MNCs? Second, which political activities do MNCs develop to cope with stakeholder interests? Third, how are political stakeholders and political activities influenced by situational conditions?A seemingly unrelated regression (SUREG) analysis of data collected from the largest 19 German MNCs in their home country and in their subsidiaries in China, France, India, Russia, and the US demonstrates that the influence of political stakeholders increases with the size of the MNC. Both the relevance of political stakeholders and the intensity of political activities depend on several country- and firm-specific conditions. Moreover, a strong influence due to the impact of political stakeholders on the intensity of political activities can be observed. |
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