Organizational slack, entrepreneurial orientation, and corporate political activity: From the behavioral theory of the firm

Abstract As a popular non-market strategy, corporate political activity (CPA) benefits firm’s risk management and competitive advantage. However, the mechanism of promoting firms to engage in remains obscure. Based on behavioral theory firm, this research develops mediation model containing organization slack, entrepreneurial orientation, investigate prediction effect different types as well dimensions orientation. multiple informant data from 303 China, conducted ordinary least-squares estimation with SPSS post hoc analysis PROCESS. The results support main key hypotheses. First, orientation plays between slack activity. Second, financial provides stronger develop certain capabilities than operational slack. Third, two sub-dimensions play heterogeneous effects according their emphasis. Managerial attitude also mediates behavior toward CPA. This enriches antecedent CPA, deepens our understanding CPA engagement mechanism, extends firm.