The political-institutional structuring of firm behaviour

1
The political-institutional structuring of firm
behaviour

• Rachel Parker

2
Elements

• The institutional environment
• Politics of markets, political-economic context
• Power
• Behaviour
• Interests, calculus, strategic choice
• Variety of responses tactics, resistance,
  collective action
• Usefulness understanding behaviour in the
  context of power differentials

3
The institutional environment

• Rules of the game
• Structures, incentives, opportunities,
  disincentives constraints, rules stipulating what
  is desirable, alignment of interests and ideas
  with structures (Voss 2001 Streeck and Thelen
  2005 Pierson 2000)
• For firms the critical context is the market
• Markets are political institutional environments
  competing interests, conflict, dominance,
  resistance

4
Power

• Unequal influence on decision making, losers and
  winners
• Sociological institutionalism is curiously
  bloodless (Hall and Taylor 1996 954)
• Looks at distribution of power, position of firm
  ? interests, strategic options
• Three dimensions (Lukes 1974)
• How do institutional arrangements affect who
  controls decisions/actions? (Dahl 1961)
• How do institutional arrangements disadvantage
  (or advantage) some groups by suppressing or
  privileging their interests (Bachrach and Baratz
  (1962))
• How do institutions affect preferences (Crenson
  1971) and who is benefited by the process of
  preference formation.

5
The structuring of firm behaviour

• Interests, calculus and strategic choice
• Calculus has been evaluated exogenously
  (erroneously)
• Increasing recognition that what is rational is
  socially, institutionally, historically
  constructed
• World views important in continuity
• But assume strategic action and choice
• Compare with sociological institutionalism
  non-choice behaviour socially appropriate,
  obvious, proper, beliefs norms are invisible to
  actors

6
Tactics, resistance, collective action

• Variety of responses depending on positions,
  interests, beliefs about interests
• Power Tactics Eisenhardt (1992) tactics to
  enhance power coalition formation, lobbying,
  controlling information, controlling agendas,
  influencing ideas and perceptions (consultants)
• Stability tactics Fligstein (2001) tactics to
  achieve stability and certainty long term
  supplier relations, alliances
• Resistance Oliver (1991) defiance and
  manipulation
• Collective action (Korpi 1991 Hargrave and Van
  de Ven 2006)