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What is Political Capability

Chapter 17
Handbook of Research on Contemporary Approaches in Management and Organizational Strategy
If a firm is able to establish political ties with governments and achieve competitive advantages over its rivals, it means this firm has political capability.
Published in Chapter:
The Impact of Technological, Governance, and Political Capabilities on Firms' Performances Under Economic Turbulence
Beste Altınçubuk (Ufuk University, Turkey)
Copyright: © 2019 |Pages: 18
DOI: 10.4018/978-1-5225-6301-3.ch017
Abstract
Although there have been various studies exploring the effects of capabilities on firms' performances, it is not clear whether particular capabilities would create more competitive advantage for firms under recessionary periods compared to expansionary periods. The main focus in this chapter is to examine the impacts of technological, governance, and political capabilities on firms' performances under recessionary and expansionary periods. The aim of this chapter is to explore these effects by drawing upon resource-based theory, transaction cost theory, and resource dependence theory.
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