Non-market strategies that affect industry conditions

Abstract

This paper investigates how resources internal to the firm are used to influence the external political environment regarding the adoption of new technology. Drawing from the non-market strategies literature, this study investigates if lobbying efforts, through corporate political activities, are affective at changing legislation involving the approval of wind farms. Using the US wind industry as the context, empirical tests are performed to determine if campaign contributions lead to favourable policy changes which subsequently increase the probability of wind farm adoption. This study confirms extant research by empirically illustrating that corporate political activities do not directly lead to beneficial legislative policy creation but can hasten the innovation adoption cycle in renewable energy via other mechanisms.