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Abstract
Lobbying constitutes a major element in the political strategy of firms seeking favorable regulatory outcomes and is perceived as a source of a firm’s competitive advantage. Recognizing firms’ ability to influence their external environments through reactive and proactive political behavior, this paper analyzes the firm-specific determinants of corporate political activity and intensity. Results from US and Japanese firms indicate that firm size, diversification, and internationalization positively influence the likelihood of a firm being an active lobbyist. While firm profitability influences the "intensity" of lobbying activity, foreign nationality has a negative impact.
Notes
28. Salorio E.M. Trade Barriers and Corporate Strategies: Why Some Firms Oppose Import Protection for their Own Industry. Unpublished dissertation. Harvard University, 1991