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Nonmarket Strategy and Organizational Performance: A review of the literature and multi-theoretical framework for future research

Abstract

 

Over the years, two parallel strands of nonmarket strategy research have emerged in isolation: one examines strategiccorporate social responsibility (CSR) and the other examines corporate political activity (CPA) even though there are obvious interactions between the social and political aspects of corporate strategies. In this article, we review and synthesize CSR and CPA research published in top tier and specialized academic outlets between 2000 and 2014. In particular, we (a) conduct a systematic review of the extent literature on nonmarket strategy-organizational performance link; (b) synthesize the mechanisms by which nonmarket strategy influences organizational performance; (c) integrate and synthesize the two strands -- CSR strategy and CPA strategy -- of the literature; (d) develop a multi-theoretical framework for improving our understanding of the effects of nonmarket strategy on organizational performance; and (e) present a research agenda for future conceptual and empirical research in the area of nonmarket strategy – organizational performance link.

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