Corporate Political Action: Rethinking the Economic and Organizational Influences

Although the influence of economic factors has long dominated the analysis of corporate political action, the role of organizational factors is increasingly seen as important in explaining the phenomenon. Building upon a recent study (Martin 1995) that emphasizes the prominence of organizational factors in political decision-making, we revisit a previously used literature, reconceptualize the relationship between economic and organizational factors and corporate political action as one of mediation, and employ new data and methods to test this relationship. Our findings demonstrate emphatically the importance of organizational factors in understanding corporate political action.