The Relationship between the Density of Fortune 500 Companies within a State and Their Political Donation in the Elections of Senators

Proceedings of The 7th International Conference on Business, Management and Economics

Year: 2022

DOI:

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The Relationship between the Density of Fortune 500 Companies within a State and Their Political Donation in the Elections of Senators

Kuo-Liang Chen, Hsin-Ju Stephie Tsai, Pei Ru You

 

ABSTRACT: 

Along with the growing interest in nonmarket strategy, more attention has been paid to companies’ strategy in social and political dimensions. However, comparing to social strategy, the literature of companies’ political strategy has fallen behind the literature of companies’ social strategy. This study aims to explore the special context in the US senators’ election, where each state has two seats of senators regardless the size of population within the given state. By incorporating with bargaining power theory, we suggest companies’ and political candidates’ bargaining power may vary across different stages of election cycle. Besides, candidate’s congressional leadership and incumbent status may drive the differences of companies’ political donation. Some theoretical and practical implications may draw from these conceptual discussions.

keywords: Nonmarket strategy, Political donation, US Senator, Bargaining Power