Global nonmarket strategy
Journal
Encyclopedia of International Strategic Management
Type
book section
Date Issued
2024-02-29
Author(s)
Abstract
Nonmarket strategy refers to firms’ design and implementation of actions and tactics beyond their market environment. These actions and tactics thus engage actors such as the government, civil society and the media, among others, and aim to improve firms’ overall performance in the nonmarket environment. Much prior research has focused on nonmarket strategies involving coordinated actions vis-à-vis actors in the public arena and documented the incidence and consequences of several types of so-called corporate political activities (CPA), such as campaign donations and lobbying, as well as cooptation through political connections. More recently, scholars are also paying more attention to nonmarket strategies aimed at a more diverse set of nonmarket actors, examining topics such as corporate social responsibility (CSR), social movements, and broader stakeholder relations, as part of the nonmarket strategy field. Insightful as this literature may be, it has primarily focused on single-country settings, leaving room for examining the additional nuance and complexity brought about by the fact that nonmarket environments are heterogenous across countries and that some firms, notably multinational enterprises (MNEs), have to design and implement nonmarket strategies that take these complexities into account.
Keywords
Corporate political activities
Corporate social responsibility
Stakeholder relations
Supranational institutions
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Edward Elgar Publishing
Start page
133
End page
137
Subject(s)
Division(s)