Caught in the Crossfire: Anti-Corporate Activism and Non-Market Strategies of Corporate Targets in the Creation of Emissions Controls

Abstract

The paper explores a unique phenomenon in the context of the strategic interaction of activists and their corporate targets. We explore a unique phenomenon - how less targeted firms leverage activists-focal firm rivalry in the context of instituting emission controls in Japan. We find that less targeted firms employ social value-based strategies against market rivals by capitalizing on the opportunity structure created by the conflicts between activists and their primary targets in non-market environments.We contribute to the literature by developing a more fine-grained argument on how dynamic interactions between multiple players (activists, primary targets, and non-targets) can lead to a different path for movement activists to achieve their goals. We also draw attention to the proactive strategic actions taken by non-target firms when their market rivals are under attack by social activists. We add to the previous arguments by revealing social value-based strategies that can serve as an alternative for corporate targets to exert influence on non-market environments.