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- Title
Examining the interplay between non-market and market strategies: A study on political ties and R&D investment.
- Authors
Cheng-Yu Lee; Hsueh-Liang Wu; Menghang Dong
- Abstract
Building corporate ties to the government has long been viewed as an important tenet of a firm's nonmarket strategy; however, the literature thus far has not yet concluded the performance implications of doing so. The mixed findings pave the way for the contextual approach to the performance effect of corporate engagement in political ties. This study thus investigates the nuances of the complex balancing act between two types of strategy choices and environmental dynamism with a sample of 7,982 firm-year observations of publicly listed firms in Taiwan during 2002-2016. The results show that building corporate political ties per se cannot guarantee firm performance, but its synergistic effect with R&D investment leads to better performance. Furthermore, this synergistic effect becomes stronger for firms subject to more dynamic environments. The findings of this study not only enrich strategy research but also caution against polarizing either market- or nonmarket-oriented strategy.
- Subjects
TAIWAN; RESEARCH &; development; MARKETING strategy; INVESTMENT management; POLITICAL science
- Publication
Corporate Management Review, 2024, Vol 44, Issue 1, p1
- ISSN
1028-7310
- Publication type
Article
- DOI
10.53106/102873102024064401001