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Lobbying as a potent political marketing tool for firm performance: A closer look
Author(s) -
Anderson Jeffrey E.,
Martin Silvia L.,
Lee Ruby P.
Publication year - 2018
Publication title -
psychology and marketing
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.035
H-Index - 116
eISSN - 1520-6793
pISSN - 0742-6046
DOI - 10.1002/mar.21102
Subject(s) - liberian dollar , politics , government (linguistics) , business , marketing , sample (material) , recession , monetary economics , economics , finance , political science , macroeconomics , linguistics , philosophy , chemistry , chromatography , law
This study endeavors to enhance political marketing literature about the impact of lobbying on firm performance. Our sample is composed of 140 U.S. firms and spans the years 2007–2014 to encompass the 2007–2009 recession and the subsequent recovery period. Our findings indicate that lobbying expenses positively contribute to firm performance. Also, government contracts in both ways, dollar amount and number of government contracts, act as mediators between lobbying expenses and firm performance. In addition, organizational slack moderates the relationship between lobbying expenses and government contracts. The managerial implications suggest that lobbying expenses can be leveraged as a potent tool for firm performance. Firms with larger lobbying efforts acquired both, higher dollar amounts and a greater number of government contracts.