Skip to main content
Article thumbnail
Location of Repository

The antecedents of political capabilities: A study of ownership, cross-border activity and organization at legacy airlines in a deregulatory context

By Thomas Lawton, Tazeeb Rajwani and Jonathan Doh

Abstract

Governments and ownership structures can both facilitate and constrain organizational value creation. Firm-level political strategy is a frequent response to protect or promote organizational interests. When effectively configured and implemented, these political strategies can become capabilities. This inductive study examines the antecedents of political capabilities in European airlines within the context of cross-border market deregulation. Our central contribution is an understanding of how management teams from non-state and state airlines organize and develop divergent corporate political capabilities in this context. While managers' actions in response to specific public policy processes can create political capabilities, the outcome is moderated by the nature of corporate ownership and the relative influence of public and private stakeholders on capability formation. Our theoretical contribution is to extend the study of organizational capabilities into the non-market context through analyzing how European flag carrier airlines organized their political capabilities in anticipation of a changing transnational policy context

Topics: Corporate political activity, organizational capabilities, ownership, air transport, cross-border deregulation
Publisher: Elsevier Science B.V., Amsterdam.
Year: 2013
DOI identifier: 10.1016/j.ibusrev.2012.04.001
OAI identifier: oai:dspace.lib.cranfield.ac.uk:1826/8415
Provided by: Cranfield CERES
Journal:

Suggested articles

Citations

  1. (2005). A comparison of ownership structure and innovations of US and Japanese firms. doi
  2. (2005). A contributions to the conceptualization of political resources utilized in corporate political action. doi
  3. (1984). A resource-based view of the firm. doi
  4. (1989). Agency theory: An assessment and review. doi
  5. (1985). An empirical evaluation of the potential for including shareholders in corporate constituency programs. doi
  6. (1982). An evolutionary theory of economic change. doi
  7. (1990). Architectural innovation: the reconfiguration of emerging product technologies and the failure of established firms. doi
  8. (1989). Asset stock accumulation and sustainable competitive advantage. doi
  9. (2006). Attention patterns as mediators between top management team characteristics and strategic change: the case of airline deregulation. doi
  10. (2003). Boards of directors and firm performance: integrating agency and resource-dependence perspectives. doi
  11. (2005). Building the firm's political (lobbying) strategy. doi
  12. (1998). Building the flexible firm: how to remain competitive. doi
  13. (1969). Business policy.
  14. (2009). Capabilities unveiled: the role of ordinary activities in the evolution of product development processes. doi
  15. (2002). Cleared for take-off: structure and strategy in the low fare airline business. doi
  16. (2002). Conflicting voices: The effects of institutional ownership heterogeneity and internal governance on corporate innovation strategies. doi
  17. (2009). Constructing markets and shaping boundaries: entrepreneurial power in nascent fields. doi
  18. (1992). Core capabilities and core rigidities: a paradox in managing new product development. doi
  19. (2003). Corporate effects and dynamic managerial capabilities. doi
  20. (2008). Corporate lobbying revisited. doi
  21. (2004). Corporate political activity: a review and research agenda.
  22. (1999). Corporate political strategies and firm performance: indications of firm-specific benefits from personal from personal service in the U.S. doi
  23. (1999). Corporate political strategy formulation: a model of approach, participation and strategy decisions. doi
  24. (2009). Creative search and strategic sense-making: missing dimensions in the concept of dynamic capabilities. doi
  25. (2002). Deliberate learning and the evolution of dynamic capabilities. doi
  26. (2005). Deregulatory forms, variations in the speed of governance adaptation, and firm performance. doi
  27. (2011). Designing lobbying capabilities: managerial choices in unpredictable environments. doi
  28. (2007). Do the type and number of blockholders influence R&D investments? A new evidence from Spain. doi
  29. (1996). Does decision process matter? A study of strategic decision making effectiveness. doi
  30. (1984). Domain maintenance as an objective of business political activity: An expanded typology. doi
  31. (1997). Dynamic capabilities and strategic management. doi
  32. (2009). Dynamic capabilities: an exploration of how firms renew their resource base. doi
  33. (2009). Dynamic capabilities: debates and future directions. doi
  34. (2007). Dynamic capabilities: understanding strategic change in organizations,
  35. (2000). Dynamic capabilities: what are they? doi
  36. (2007). Empirical research on the resource-based view of the firm: an assessment and suggestions for future research. doi
  37. (1999). Enhancing the quality of case studies in health services research.
  38. (2003). Experiential and informational knowledge, architectural marketing capabilities, and the adaptive performance of export ventures: a cross-national study. doi
  39. (1990). Firm ownership preferences and host government restrictions: an intergrated approach. doi
  40. (1991). Firm resources and sustained competitive advantage. doi
  41. (2006). First mover advantages in international business and firm-specific political resources. doi
  42. (1990). Foundation of social theory. Cambridge MA:
  43. (2005). From metaphor to practice in the crafting of strategy. doi
  44. (2003). Government birds: air transport and the state in western Europe.
  45. (2000). In search of new foundations. doi
  46. (1992). Industry regulation and the performance of the American economy.
  47. (2010). Institutional ownership and corporate political strategies: does heterogeneity of institutional owners matter?.
  48. (1987). Institutional structure and the logic of ongoing collective action. doi
  49. (2008). Institutions and international business. doi
  50. (1997). Integrated strategy in international trade disputes, the Kodak-Fujifilm case. doi
  51. (1999). Integrating strategic, organizational, and human resource perspectives on mergers and acquisitions: a case survey of synergy realization. doi
  52. (1996). Inter-organizational collaboration and the locus of innovation: networks of learning in biotechnology. doi
  53. (2004). Interest group lobbying and corporate strategy. doi
  54. (1995). International expansion strategy of Japanese firms: capability building through sequential entry. doi
  55. (2000). Intuition and entrepreneurial behavior. doi
  56. (2000). Leadership, capabilities, and technological change: the transformation of NCR in the electronic era. doi
  57. (1994). Lobbying the European Union.
  58. (2007). Managerial discretion and internal alignment under regulatory constraints and change. doi
  59. (2007). Managing firm resources in dynamic environments to create value: looking inside the black box. doi
  60. (1994). Measuring competence? Exploring firm effects in pharmaceutical research. doi
  61. (2004). Measuring political risk: risks to foreign investment.
  62. (2001). Networks as the pipes and prisms of the market. doi
  63. (2006). Non-market strategy performance: evidence from U.S. electric utilities. doi
  64. (2002). Organizations: rational, natural and open systems. doi
  65. (2004). Predictors of firm-level political behavior in the global business environment: an investigation of specific activities employed by US firms. doi
  66. (2000). Pressure groups and British politics. Contemporary political studies.
  67. (2003). Pricing process as capability: a resource-based perspective. doi
  68. (1972). Production, information costs and economic organization. doi
  69. (1990). Property rights and the nature of the firm. doi
  70. (2002). Public affairs and political strategy: theoretical foundations. doi
  71. (1994). Qualitative data analysis: an expanded sourcebook. (2 nd ed.) Thousand Oaks, doi
  72. (1999). Qualitative research in organizational and vocational psychology. doi
  73. (2002). Raising rivals’ costs through political strategy: an extension of resource-based theory. doi
  74. (1997). Research in corporate political action: integration and assessment. doi
  75. (2008). Shaping strategy as a structuration process. doi
  76. (1998). Social capital, intellectual capital, and the organizational advantage. doi
  77. (1986). Social resources and social economic status. doi
  78. (1981). Social resources and strength of ties: structural factors in occupational status attainment. doi
  79. (1993). Strategic assets and organizational rent. doi
  80. (2005). Strategic organization: a field in search of microfoundations. doi
  81. (1987). Strategy making and structure: analysis and implications for performance. doi
  82. (2008). Strategy-as-practice and dynamic capabilities: steps towards a dynamic view of strategy. doi
  83. (2010). Technological discontinuities and competitive advantage: a historical perspective on formula 1 motor racing 1950-2006. doi
  84. (1997). The art of continuous change: linking complexity theory and time-paced evolution in relentlessly shifting organizations. doi
  85. (2002). The birth of capabilities: market entry and the importance of prehistory. doi
  86. (1997). The contingent value of social capital. doi
  87. (1993). The cornerstones of competitive advantage: a resource-based view. doi
  88. (2003). The dynamic resource-based view: capability lifecycles. doi
  89. (1980). The economic theory of clubs: an evaluative survey.
  90. (2008). The effectiveness of strategic political management: a dynamic capabilities framework. doi
  91. (2005). The high impact of collaborative social initiatives.
  92. (1991). The hubris of regulated competition: airlines, 1925–88.
  93. (1995). The knowledge creating company. doi
  94. (2004). The modern roots of strategic management.
  95. (1995). The non-market strategy system,
  96. (1993). The political embeddedness of private economic transactions, doi
  97. (1987). The politics of airline deregulation. doi
  98. (2001). The resource based view and international business. doi
  99. (1995). The resource-based view of the firm: ten years after. doi
  100. (1992). The resource-based view within the conversation of strategic management. doi
  101. (1992). The second aviation package of the European community.
  102. (1973). The strength of weak ties. doi
  103. (2001). The structure and conduct of corporate lobbying: an empirical analysis of corporate lobbying at the federal communications commission. doi
  104. (2000). The structure of problem-solving knowledge and the structure of organizations. doi
  105. (1959). The theory of the growth of the firm (3 rd ed). Oxford:
  106. (1995). Theories and narratives: reflections on the philosophy of history. doi
  107. (2001). Theories of strategic non-market participation: majority-rule and executive institutions. doi
  108. (1992). Theory in international business.
  109. (1976). Theory of the firm: managerial behavior, agency costs and capital structure. doi
  110. (2005). Threats to international operations: dealing with political risk at the firm level. doi
  111. (2007). To bribe or to convince? Political stakeholders and political activists in German multinational corporations. doi
  112. (2001). Top management teams, global strategic posture and the moderating role of uncertainty. doi
  113. (1997). Towards an attention-based view of the firm. doi
  114. (2005). Unbundling the structure of inertia: Resource versus routine rigidity. doi
  115. (1999). Using qualitative methods to organize research.
  116. (1997). What is a processual analysis? doi

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.