Abstract

This paper develops a measurement tool for corporate political activity (CPA) by applying a resource-based view with a focus on political resources. In addition, path-dependence theory is used to examine inertial consequences of the trade-off between corporate stakeholder relationships, namely, between politics and customers. The following research questions are addressed: How can CPA be measured? And can CPA lead to strategic inertia over time? The empirical analysis is based on survey data primarily collected at 218 major German companies. The results give new insights into today’s CPAs within the German market. Using explorative factor analysis, four components are identified: activities, function, public affairs, and strategy.