Swsw Essay

14549 Words59 Pages
Academy of Management Journal 2012, Vol. 55, No. 2, 339–359. http://dx.doi.org/10.5465/amj.2010.0370 POLITICAL PLURALISM, PUBLIC POLICIES, AND ORGANIZATIONAL CHOICES: BANKING BRANCH EXPANSION IN INDIA, 1948–2003 RAJIV KRISHNAN KOZHIKODE University of Groningen JIATAO LI Hong Kong University of Science and Technology Data on the expansion of 94 commercial banks in India from 1948 to 2003 were analyzed to test the proposition that political pluralism—wherein competing parties control the state and national governments of a nation—can promote business expansion. The results confirm that such political pluralism reduces the power of either government to constrain business decision making but that pluralism might at times lead to unhealthy competition between parties, harming local expansion opportunities. The data show that, in India, banks selectively exploit political pluralism to guide their expansion decisions. Corporate political activity is an active area of research examining how organizations pursue their interests in the public policy arena (see Hillman, Keim, and Schuler [2004] for a review). Studies in this area have observed that to ensure fair representation of their interests in public policy prescriptions, organizations persuade key agents of governments through efforts such as lobbying and forming coalitions (Baron, 1995; Hillman & Hitt, 1999). Studies also recognize that the choice and success of corporate political activity is a function of the configuration of the political institutions in a given context (Bonardi, Hillman, & Keim, 2005; Henisz & Zelner, 2003). Recent research in this tradition has emphasized that theories treating corporate political activity should take into consideration the fragmentation of government power among its many offices and bureaucracies (Holburn & Vanden We are grateful to Associate Editor David Ketchen Jr. and

More about Swsw Essay

Open Document