We argue that a taken-for-granted category gives way to a new category when strategic behavior becomes stigmatized. As a result, even bystander firms that have engaged in similar strategic behavior, such as lobbying, will be penalized by their association with the culpable strategic behavior. The extent of their association with the culpable behavior will determine the level of punishment they receive. However, if a trustworthy third party administers a corrective measure, the affected firms can regain their lost legitimacy. The extent of their restoration is proportional to the amount of legitimacy that was lost. We provide empirical evidence for this argument by analyzing the Jack Abramoff case, one of the most notorious corrupt lobbying cases in US history. We find that bystander firms were penalized by shareholders when the corrupt lobbying was revealed. Furthermore, the penalty was more severe for bystander firms that engaged in more lobbying activities and hired more revolving-door lobbyists. We also find that the subsequent legal remedy helped the bystander firms that were penalized the most to recover the most from their losses. We confirm the theoretical notion using the Enron case as well.
{"title":"The Cost of Wrongdoing to Bystander Firms","authors":"Min-Jung Lee, Mina Lee, Seunghyup Lee","doi":"10.1017/bap.2023.8","DOIUrl":"https://doi.org/10.1017/bap.2023.8","url":null,"abstract":"\u0000 We argue that a taken-for-granted category gives way to a new category when strategic behavior becomes stigmatized. As a result, even bystander firms that have engaged in similar strategic behavior, such as lobbying, will be penalized by their association with the culpable strategic behavior. The extent of their association with the culpable behavior will determine the level of punishment they receive. However, if a trustworthy third party administers a corrective measure, the affected firms can regain their lost legitimacy. The extent of their restoration is proportional to the amount of legitimacy that was lost. We provide empirical evidence for this argument by analyzing the Jack Abramoff case, one of the most notorious corrupt lobbying cases in US history. We find that bystander firms were penalized by shareholders when the corrupt lobbying was revealed. Furthermore, the penalty was more severe for bystander firms that engaged in more lobbying activities and hired more revolving-door lobbyists. We also find that the subsequent legal remedy helped the bystander firms that were penalized the most to recover the most from their losses. We confirm the theoretical notion using the Enron case as well.","PeriodicalId":39749,"journal":{"name":"Business and Politics","volume":"27 1","pages":""},"PeriodicalIF":1.8,"publicationDate":"2023-05-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80707016","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"社会学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract What determines the bargaining power of states in international trade negotiations? The literature focuses predominantly on economic strength as the determinant of bargaining power. However, this explanation neglects the reality of modern trade, which is characterized by the globalization of production and high levels of economic interdependence. I argue that this interdependence undermines the effect of economic strength on the bargaining power of states. Specifically, I hypothesize that the effect of economic strength declines when a country's companies rely on inputs for their production from a negotiation partner because they are integrated into global value chains. The more a country's firms are dependent on a partner country, the less that country is able to coerce concessions from the partner country by bringing to bear its economic strength. To test this hypothesis, I use a dataset covering concessions on liberalization of the services sector made by 54 countries in 61 preferential trade agreements. By calculating the relative concessions of each partner, I construct a quantitative indicator of the outcome of trade negotiations. This indicator should reflect the underlying bargaining power of each negotiating party. The results of a regression analysis of these negotiation outcomes mostly support my hypotheses.
{"title":"Bargaining Power in a Globalized World: The Effect of Global Value Chains in Trade Negotiations","authors":"Yannick Stiller","doi":"10.1017/bap.2023.5","DOIUrl":"https://doi.org/10.1017/bap.2023.5","url":null,"abstract":"Abstract What determines the bargaining power of states in international trade negotiations? The literature focuses predominantly on economic strength as the determinant of bargaining power. However, this explanation neglects the reality of modern trade, which is characterized by the globalization of production and high levels of economic interdependence. I argue that this interdependence undermines the effect of economic strength on the bargaining power of states. Specifically, I hypothesize that the effect of economic strength declines when a country's companies rely on inputs for their production from a negotiation partner because they are integrated into global value chains. The more a country's firms are dependent on a partner country, the less that country is able to coerce concessions from the partner country by bringing to bear its economic strength. To test this hypothesis, I use a dataset covering concessions on liberalization of the services sector made by 54 countries in 61 preferential trade agreements. By calculating the relative concessions of each partner, I construct a quantitative indicator of the outcome of trade negotiations. This indicator should reflect the underlying bargaining power of each negotiating party. The results of a regression analysis of these negotiation outcomes mostly support my hypotheses.","PeriodicalId":39749,"journal":{"name":"Business and Politics","volume":"53 1","pages":"173 - 194"},"PeriodicalIF":1.8,"publicationDate":"2023-05-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"74171301","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"社会学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract Former legislators who lobby exacerbate the effects of financial resources on the relative political influence that various organized interests achieve. These lobbyists receive more income and achieve favorable policy outcomes more often than other lobbyists. The value of these revolving-door lobbyists, however, is contingent on the continued presence of former colleagues in legislatures. Former legislators achieve influence because of their insider connections, and membership turnover among incumbents decreases the value of this asset for interest groups. I examine the incomes and clienteles of former legislators who lobbied in the American states over seven decades. Turnover is a consistent, negative predictor of revolver value. This effect is enhanced by the presence of legislative staff support. This study is the first to examine the value of revolving-door lobbyists in the state legislatures. My findings imply that reforms that induce turnover help to level playing fields of political advocacy among interests with different levels of financial resources.
{"title":"The contingent value of connections: legislative turnover and revolving-door lobbyists","authors":"James M. Strickland","doi":"10.1017/bap.2023.4","DOIUrl":"https://doi.org/10.1017/bap.2023.4","url":null,"abstract":"Abstract Former legislators who lobby exacerbate the effects of financial resources on the relative political influence that various organized interests achieve. These lobbyists receive more income and achieve favorable policy outcomes more often than other lobbyists. The value of these revolving-door lobbyists, however, is contingent on the continued presence of former colleagues in legislatures. Former legislators achieve influence because of their insider connections, and membership turnover among incumbents decreases the value of this asset for interest groups. I examine the incomes and clienteles of former legislators who lobbied in the American states over seven decades. Turnover is a consistent, negative predictor of revolver value. This effect is enhanced by the presence of legislative staff support. This study is the first to examine the value of revolving-door lobbyists in the state legislatures. My findings imply that reforms that induce turnover help to level playing fields of political advocacy among interests with different levels of financial resources.","PeriodicalId":39749,"journal":{"name":"Business and Politics","volume":"47 1","pages":"152 - 172"},"PeriodicalIF":1.8,"publicationDate":"2023-04-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84998082","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"社会学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract As China has made it a top priority to enrich and upgrade its chip capabilities across the value chain, some international observers predict that China's semiconductor industry will eventually, if not immediately, surpass its foreign competitors. Others remain skeptical about its presumed tech supremacy for plausible but largely speculative reasons. Is the Chinese semiconductor industry a game-changer or a paper tiger? Is China's indigenous chip technology attractive to, and usable by, foreign technology? One way to look into these half-empty/half-full questions is to comparatively analyze chip patents granted by the US Patent and Trademark Office. The target domain of this study is integrated circuits (IC) technology, especially thin-film-transistor circuits, where China has recently registered a sharp growth in patent publications. Using the modified forward citation indices of panel display-related IC patents, this study examines whether and to what extent the quantitative growth in the Chinese semiconductor industry has been translated into a gravitational force to pull foreign industries within its sphere of influence. Estimation results of a zero-inflated negative binomial regression analysis show that a Chinese chip patent has a fewer expected modified forward citation index than a non-Chinese patent. These findings indicate that the technological gap between China and advanced countries will take longer to close despite China's accelerated campaign for chip supremacy. This study concludes, with some caveats, that China faces the dual challenge of achieving higher productivity and greater self-reliance, while having to survive in the escalating technological competition with other advanced countries.
{"title":"China's dream for chip supremacy: Seeing through the lens of panel display-related IC patents","authors":"Eunji Choung, M. Koo","doi":"10.1017/bap.2023.1","DOIUrl":"https://doi.org/10.1017/bap.2023.1","url":null,"abstract":"Abstract As China has made it a top priority to enrich and upgrade its chip capabilities across the value chain, some international observers predict that China's semiconductor industry will eventually, if not immediately, surpass its foreign competitors. Others remain skeptical about its presumed tech supremacy for plausible but largely speculative reasons. Is the Chinese semiconductor industry a game-changer or a paper tiger? Is China's indigenous chip technology attractive to, and usable by, foreign technology? One way to look into these half-empty/half-full questions is to comparatively analyze chip patents granted by the US Patent and Trademark Office. The target domain of this study is integrated circuits (IC) technology, especially thin-film-transistor circuits, where China has recently registered a sharp growth in patent publications. Using the modified forward citation indices of panel display-related IC patents, this study examines whether and to what extent the quantitative growth in the Chinese semiconductor industry has been translated into a gravitational force to pull foreign industries within its sphere of influence. Estimation results of a zero-inflated negative binomial regression analysis show that a Chinese chip patent has a fewer expected modified forward citation index than a non-Chinese patent. These findings indicate that the technological gap between China and advanced countries will take longer to close despite China's accelerated campaign for chip supremacy. This study concludes, with some caveats, that China faces the dual challenge of achieving higher productivity and greater self-reliance, while having to survive in the escalating technological competition with other advanced countries.","PeriodicalId":39749,"journal":{"name":"Business and Politics","volume":"24 1","pages":"117 - 132"},"PeriodicalIF":1.8,"publicationDate":"2023-03-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"73029507","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"社会学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Jakub Sawulski, Nikodem Szewczyk, Kinga Rafalska, Maciej Smółko
Abstract In 2021 the ruling party in Poland proposed a reform to reverse the regressivity of the Polish tax system. Although the number of potential beneficiaries significantly exceeded the number of sufferers, the media coverage of the reform was strongly negative. This pushed the government to introduce reform adjustments, all of which benefited the high-income self-employed, increasing the cost of the reform and reducing its redistributive effect. To explain this, we analyze articles on the reform published in the three most opinion-forming newspapers. We demonstrate that the negative media coverage stemmed from successful incorporation of business narratives in the public debate by the business lobbying associations. It was supported by the weakness of workers’ organizations and a low level of citizens’ trust in government.
{"title":"Business power against redistribution: The case of watered-down tax reform in Poland","authors":"Jakub Sawulski, Nikodem Szewczyk, Kinga Rafalska, Maciej Smółko","doi":"10.1017/bap.2023.3","DOIUrl":"https://doi.org/10.1017/bap.2023.3","url":null,"abstract":"Abstract In 2021 the ruling party in Poland proposed a reform to reverse the regressivity of the Polish tax system. Although the number of potential beneficiaries significantly exceeded the number of sufferers, the media coverage of the reform was strongly negative. This pushed the government to introduce reform adjustments, all of which benefited the high-income self-employed, increasing the cost of the reform and reducing its redistributive effect. To explain this, we analyze articles on the reform published in the three most opinion-forming newspapers. We demonstrate that the negative media coverage stemmed from successful incorporation of business narratives in the public debate by the business lobbying associations. It was supported by the weakness of workers’ organizations and a low level of citizens’ trust in government.","PeriodicalId":39749,"journal":{"name":"Business and Politics","volume":"78 1","pages":"133 - 151"},"PeriodicalIF":1.8,"publicationDate":"2023-03-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87097082","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"社会学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract Bringing democracy to the workplace has gained researchers’ attention during the last few years. In addition to its proorganizational outcomes, democratization at the workplace also helps to eradicate organizational negativities. The present study investigates these claims by empirically examining the relationship between organizational democracy, perception of politics, and workplace incivility. A sample of 300 full-time employees working in fifteen different banks in the district of Gujrat Pakistan was obtained. The structural equation modeling technique was used to test the proposed hypotheses. The results indicated that workplace democracy is negatively associated with the perception of organizational politics and workplace incivility. Nevertheless, when there is organizational democracy with a supportive environment, it further reduces its incivility and politics. The study provides empirical evidence to managers and organizational decision makers in developing democratic workplaces to promote participative culture and eradicate organizational negativities. More studies on democratic practices with different contexts and factors are discussed and proposed for future studies.
{"title":"The perceptional triangle of incivility, politics, and democracy: The role of supportiveness","authors":"Kaleem Ahmed, Alia Ahmed, Shahzada Adeel","doi":"10.1017/bap.2022.25","DOIUrl":"https://doi.org/10.1017/bap.2022.25","url":null,"abstract":"Abstract Bringing democracy to the workplace has gained researchers’ attention during the last few years. In addition to its proorganizational outcomes, democratization at the workplace also helps to eradicate organizational negativities. The present study investigates these claims by empirically examining the relationship between organizational democracy, perception of politics, and workplace incivility. A sample of 300 full-time employees working in fifteen different banks in the district of Gujrat Pakistan was obtained. The structural equation modeling technique was used to test the proposed hypotheses. The results indicated that workplace democracy is negatively associated with the perception of organizational politics and workplace incivility. Nevertheless, when there is organizational democracy with a supportive environment, it further reduces its incivility and politics. The study provides empirical evidence to managers and organizational decision makers in developing democratic workplaces to promote participative culture and eradicate organizational negativities. More studies on democratic practices with different contexts and factors are discussed and proposed for future studies.","PeriodicalId":39749,"journal":{"name":"Business and Politics","volume":"49 1","pages":"53 - 66"},"PeriodicalIF":1.8,"publicationDate":"2023-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84671254","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"社会学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Laurel A. Steinfield, Girish Ramani, R. Hill, Rehana Paul
{"title":"An examination of legality of global abortion services and the genesis of public policy—CORRIGENDUM","authors":"Laurel A. Steinfield, Girish Ramani, R. Hill, Rehana Paul","doi":"10.1017/bap.2023.2","DOIUrl":"https://doi.org/10.1017/bap.2023.2","url":null,"abstract":"","PeriodicalId":39749,"journal":{"name":"Business and Politics","volume":"5 1","pages":"89 - 89"},"PeriodicalIF":1.8,"publicationDate":"2023-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"79777474","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"社会学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"BAP volume 25 issue 1 Cover and Front matter","authors":"","doi":"10.1017/bap.2022.24","DOIUrl":"https://doi.org/10.1017/bap.2022.24","url":null,"abstract":"","PeriodicalId":39749,"journal":{"name":"Business and Politics","volume":"1 1","pages":"f1 - f2"},"PeriodicalIF":1.8,"publicationDate":"2023-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84721352","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"社会学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract To what extent do national strategic interests influence countries’ distribution of health assistance during a global health crisis? We examine China's global COVID-19 vaccine allocation, focusing on the relationship between its vaccine prioritization and its geopolitical expansion through the Belt and Road Initiative (BRI). We claim China uses its vaccine diplomacy as a comprehensive tool to promote its grand strategy and expand its global leadership and influence. Employing a newly available dataset on Chinese COVID-19 vaccine deliveries for a cross-section of 108 BRI member countries, our study shows that countries with foreign direct investment flows into BRI projects have received more vaccines from China. Our findings confirm that donor strategic concerns affect bilateral foreign assistance. Our results remain robust to several robustness checks, including endogeneity concerns.
{"title":"The political economy of vaccine distribution and China's Belt and Road Initiative","authors":"K. Vadlamannati, Y. Jung","doi":"10.1017/bap.2022.26","DOIUrl":"https://doi.org/10.1017/bap.2022.26","url":null,"abstract":"Abstract To what extent do national strategic interests influence countries’ distribution of health assistance during a global health crisis? We examine China's global COVID-19 vaccine allocation, focusing on the relationship between its vaccine prioritization and its geopolitical expansion through the Belt and Road Initiative (BRI). We claim China uses its vaccine diplomacy as a comprehensive tool to promote its grand strategy and expand its global leadership and influence. Employing a newly available dataset on Chinese COVID-19 vaccine deliveries for a cross-section of 108 BRI member countries, our study shows that countries with foreign direct investment flows into BRI projects have received more vaccines from China. Our findings confirm that donor strategic concerns affect bilateral foreign assistance. Our results remain robust to several robustness checks, including endogeneity concerns.","PeriodicalId":39749,"journal":{"name":"Business and Politics","volume":"31 1","pages":"67 - 88"},"PeriodicalIF":1.8,"publicationDate":"2023-02-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78050300","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"社会学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract This paper examines the attitudes of multinational corporations (MNCs) toward the U.S.-China trade war through an original survey of China-based MNC subsidiaries in the manufacturing industry. Our argument is in two parts. First, firms that have relocated production outside of China or are considering such moves should be less likely to oppose the trade war as they possess outside options that reduce their vulnerability to trade restrictions. Second, firms’ tendency toward production relocation can in turn be explained by their local sourcing dependence, as measured by the level of such dependence and the degree to which their operations require supplier certification. This is because firms more heavily embedded in local supplier networks face stronger resource dependence that increases organizational inertia, reducing their ability to switch to alternative suppliers and therefore relocating production to other destinations. Our findings corroborate our hypotheses, highlighting how the heterogeneity in MNCs’ supply chain relationships may influence both their manufacturing relocation decisions and trade policy preferences.
{"title":"Local sourcing embeddedness, manufacturing relocation, and firm attitudes toward the US-China trade war: A survey analysis of China-based MNC subsidiaries","authors":"K. Zeng, Yingjie Xu, Zhenzhen Xie","doi":"10.1017/bap.2022.27","DOIUrl":"https://doi.org/10.1017/bap.2022.27","url":null,"abstract":"Abstract This paper examines the attitudes of multinational corporations (MNCs) toward the U.S.-China trade war through an original survey of China-based MNC subsidiaries in the manufacturing industry. Our argument is in two parts. First, firms that have relocated production outside of China or are considering such moves should be less likely to oppose the trade war as they possess outside options that reduce their vulnerability to trade restrictions. Second, firms’ tendency toward production relocation can in turn be explained by their local sourcing dependence, as measured by the level of such dependence and the degree to which their operations require supplier certification. This is because firms more heavily embedded in local supplier networks face stronger resource dependence that increases organizational inertia, reducing their ability to switch to alternative suppliers and therefore relocating production to other destinations. Our findings corroborate our hypotheses, highlighting how the heterogeneity in MNCs’ supply chain relationships may influence both their manufacturing relocation decisions and trade policy preferences.","PeriodicalId":39749,"journal":{"name":"Business and Politics","volume":"1 1","pages":"91 - 116"},"PeriodicalIF":1.8,"publicationDate":"2023-01-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"79869593","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"社会学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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