Organizational slack, entrepreneurial orientation, and corporate political activity: From the behavioral theory of the firm

Behavioral theory of the firm and CPA engagement

CPA is a firm’s attempt to shape government policy to advance private ends (Hillman et al., 2004). The overall objective of political behavior is to produce public policy outcomes that are favorable for the firm’s continued economic survival and success. To accomplish their goals, firms must respond to the external political environment by organizing their resource. Whether firms decide to engage in CPA or not is closely related to the organization’s resource and strategic orientation. The behavioral theory of the firm posits that…