The Role of Political Capabilities and Political Strategies in Marketing

This study tries to integrate two streams of research, marketing strategy and corporate political activity (CPA). After a review of the literature, Resource Based View theory was judged to be the most appropriate as it has been used by both streams of research and the underlying assumptions were compatible with the phenomena examined: marketing and corporate political activity. Literature suggests there are many complementarities and synergies between the two functions that can be effectively mobilised to improve the implementation effectiveness of marketing and corporate political strategies as well as the overall organisational performance. Based on that observation and scarcity of research in this field, this study: (1) proposes and empirically tests a comprehensive conceptual framework that links marketing strategy and CPA strategies; (2) examines the relationship between marketing and CPA strategies with capabilities and the implementation effectiveness of the chosen strategies; (3) investigates how the level of coordination between marketing and CPA functions assists the implementation effectiveness of strategies and performance; and (4) examines the impact of the business environment on the effect capabilities have on strategy implementation. The model is calibrated with the use of qualitative research of managers of corporate political activities within corporations as well as public affairs agencies that undertake most of the CPA on behalf of their corporate clients. The model was tested on a sample of 306 American companies using a survey data collection method. The results of the study confirmed that CPA and marketing have equal contributions to organisational performance and firms have to pay attention to both. Furthermore, CPA can aid in the implementation of marketing strategies and marketing capabilities can help in the development of specific CPA capabilities. The coordination between the two functions is beneficial to both CPA and marketing when the business environment is poor in critical resources and high in operational constraints.