Toward a Global Theory of Cross-Border and Multilevel Corporate Political Activity

Abstract

A proposed global theory of corporate political activity (CPA) analyzes the complex resource allocation choices involved in integrating politically relevant cross-border and multilevel strategies for multinational enterprises (MNEs). Cross-border CPA is “horizontal” allocation of scarce corporate resources by MNEs to politically relevant strategies across multiple countries. Globalization reshapes CPA among multiple levels functioning below, at, and above national governments. Subnational communities and international policy regimes, supranational quasigovernmental institutions, and supranational nongovernmental organizations all affect businesses. Multilevel CPA is “vertical” allocation of scarce corporate resources to politically relevant strategies among subnational, national, regional, and global levels. Furthermore, in each country and at each level, business-relevant policies are determined in multiple policy arenas, shaped by widely differing nonmarket institutions, corruption conditions, and stakeholder demands for corporate social responsibility. Multiple policy “arena” allocation adds to the analytical complexity of the CPA strategizing problem. Implications for scholarship and practice are presented.