| Integrating Corporate Social and Corporate Political Strategies: Performance Effects and Institutional Contingencies in China |
Received:October 15, 2017 Revised:October 15, 2017 |
Key Words: corporate social responsibilities (CSR), corporate political activities (CPA), integration between CSR and CPA, nonmarket strategy |
| Author Name | Affiliation | | Tao Bai | Xi’an Jiaotong-Liverpool University | | Jialin Du* | Renmin University of China | | Stephen Chen | University of Newcastle |
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Abstract: |
| This study proposes an integrative approach of corporate nonmarket strategy by examining how corporate social responsibilities (CSR) and corporate political activities (CPA) interactively affect firms’ financial performance. Drawing on the social exchange theory and institutional theory, we suggest synergetic effects between CSR and CPA on firms’ financial performance, and we explore how institutional heterogeneities may alter the strength of these positive interactions. Based on the panel data of all publicly listed firms from 2011 to 2015 in China, our results show a positive interaction between CSR and CPA on firms’ financial performance, and this positive interaction is stronger when the government involvement is high and Guanxi is prevalent. Our study contributes to the nonmarket strategy literature by integrating two normally-separated lines of research, and emphasizing the value of managing nonmarket environments in an integrative manner. |
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