strategy, government association strategy, and direct participation strategy. The most often used political tactics in other strategies are “providing financial support for governments’ activities” in financial incentive strategy, “looking for familiar government officials directly and expecting them to speak for firms” in prolocutor strategy and “active inquiry of governments’ policies and regulations” in information consultation strategy. Secondly, it is obvious that, these strategies are related and are used by firms jointly in order to get any positive results, and only one single strategy may not usually work.
4 Further Discussions
This part of our paper will further discuss the research findings introduced in previous sections and the characteristics of political strategies of firms in China by relating them to the studies of existing literatures. There are a large amount of research literatures about corporate political actions and strategies in the West (Davis,1998; Getz,1993; Hillman,1995; Hillman & Hitt, 1999; Keim,1981; Sethi,1982). Getz(1993)identified seven tactics of CPA which are lobbying, reporting research results, reporting survey results, testimony, legal actions, personal service, and constituency building. Hillman and Hitt (1999) divided corporate political strategies into three categories: information strategy, financial incentive strategy and constituency building strategy. And they enumerated a large number of political tactics or activities, such as lobbying, reporting research results, testifying as expert witnesses, supplying position papers or technical reports, contributions to politicians or party, honoraria for speaking, paid travel, personal service, grassroots mobilization, advocacy
advertising, public relations, press conferences and political education programs, etc. Just as Berman (1980) reviewed, literature on CPS concentrated on business’s influence to legislative process by lobbying and campaign contributions. Through the comparison with western corporation political actions and strategies, we find that there is a high level of similarity, as well as big differences, between Chinese corporation political actions and western corporation political actions.
As to government involvement strategies and government association strategies, they are used mainly by firms in China. Except for “inviting government officials to attend important occasions” and “calling on government officials frequently”, firms in western environment seldom use other political tactics in these two political strategies identified in our paper.
For direct participation strategy, Chinese firms can take part in policy decisions through elected as congressman, or voice firm’s opinions on important government policies through elected as members of CPPCC. Furthermore, most leaders of large SOEs are appointed by the government at present, and can participate in government decisions directly. These aspects are exclusive to Chinese situation and have no similarity in the West. As to the other direct participation tactics, such as firm’s employees acting as consultants for government, or through trade association, or acting as professionals for some policy issue, common phenomena exist in both China and the West.
For financial incentive strategy, there is one important difference between firms in China and in the West. Firms in the West can impact government decision-makers through campaign contributions and PAC donations, while
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