Hostname: page-component-586b7cd67f-t7czq Total loading time: 0 Render date: 2024-11-23T00:00:16.978Z Has data issue: false hasContentIssue false
  • English
  • Français

Determinants of Access to Legislative and Executive Branch Officials: Business Firms and Trade Policymaking in the U.S.

Published online by Cambridge University Press:  20 January 2017

Douglas A. Schuler  and
Kathleen Rehbein
Douglas A. Schuler
Affiliation:
Rice University
Kathleen Rehbein
Affiliation:
Marquette University
Get access Rights & Permissions [Opens in a new window]

Abstract

We examine the characteristics of business firms that gain access to legislative and executive branch officials in the trade policymaking area. Our empirical analysis of over 1200 manufacturers reveals that legislators were most attracted to firms with foreign market expertise, firms which actively participated in politics with outside lobbyists and campaign contributions, and firms with significant employment in the state and/or district. Executive branch officials were responsive to firms with foreign market expertise, firms from industries that had previously received tariff protection, firms using in-house government affairs specialists and outside lobbyists to convey information, and firms making campaign contributions to members of the trade oversight legislative committees. Our results largely support the political market framework and provide insights about the attractiveness of certain demanders to suppliers of trade policies from the legislative and executive branches of the U.S. federal government.

Keywords

corporate political activitylobbyingcampaign contributionsaccesspolitical markets
Type
Research Article
Information
Business and Politics , Volume 13 , Issue 3: Special Issue: The Domestic Foundations of IPE: The U.S. Case in Current and Historical Perspective , October 2011 , pp. 1 - 30
Copyright
Copyright © V.K. Aggarwal 2011 and published under exclusive license to Cambridge University Press 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Adler, Paul S. and Kwon, Seok-Woo. 2002. “Social Capital: Prospects for a New Concept.” Academy of Management Review 27: 17–40.CrossRefGoogle Scholar
Agresti, Alan. 1990. Categorical Data Analysis. New York, New York: John Wiley and Sons.Google Scholar
Ansolabehere, Stephen, Snyder, James M. Jr., and Tripathi, Mickey. 2002. “Are PAC Contributions and Lobbying Linked? New Evidence from the 1995 Lobby Disclosure Act.” Business and Politics 4: 131–155.CrossRefGoogle Scholar
Arnold, R. Douglas. 1990. The Logic of Congressional Action. New Haven, Connecticut: Yale University Press.Google Scholar
Balla, Steven J. and Wright, John R. 2001. “Interest Groups, Advisory Committees and Congressional Control of the Bureaucracy.” American Journal of Political Science 45 (4): 799–812.CrossRefGoogle Scholar
Baron, David P. 1995. “Integrated Strategy: Market and Nonmarket Components.” California Management Review 37 (2): 47–65.CrossRefGoogle Scholar
Baumgartner, Frank R., Berry, Jeffrey M., Hojnacki, Marie, Kimball, David C., and Leech, Beth L. 2009. Lobbying and Policy Change: Who Wins, Who Loses, and Why. Chicago, Illinois: University of Chicago Press.CrossRefGoogle Scholar
Boltuck, Richard and Litan, Robert E. 1991. Down in the Dumps: Administration of the Unfair Trade Laws. Washington, D.C.: Brookings Institute.Google Scholar
Bonardi, Jean-Philippe, Hillman, Amy J., and Keim, Gerald D. 2005. “The Attractiveness of Political Markets: Implications for Firm Strategy.” Academy of Management Review 30: 397–413.CrossRefGoogle Scholar
Bonardi, Jean-Philippe, Holburn, Guy L. F., and Vanden Bergh, Richard G. 2006. “Nonmarket Strategy Performance: Evidence from U.S. Electric Utilities.” Academy of Management Journal 49 (6): 1209–1228.CrossRefGoogle Scholar
Bouwen, Pieter. 2002. “Corporate Lobbying in the European Union: The Logic of Access.” Journal of European Public Policy 9: 365–390.CrossRefGoogle Scholar
Center for Responsive Politics. 2010. “What is a PAC?” Accessed 3 September 2010. http://www.opensecrets.org/pacs/pacfaq.php.Google Scholar
Chin, Michelle L., Bond, Jon R., and Geva, Nehemia. 2000. “A Foot in the Door: An Experimental Study of PAC and Constituency Effects on Access.” Journal of Politics 62: 534–549.CrossRefGoogle Scholar
Cox, David Roxbee and Snell, E. J. 1989. The Analysis of Binary Data, 2nd edition. London: England. Chapman and Hall.Google Scholar
Dahan, Nicolas. 2005. “A Contribution to the Conceptualization of Political Resources Utilized in Corporate Political Action.” Journal of Public Affairs 5: 43–54.CrossRefGoogle Scholar
de Figueiredo, John M. 2002. “Lobbying and Information in Politics.” Business and Politics 4: 125–129.CrossRefGoogle Scholar
DeGregorio, Christine and Rossotti, J. E. 1994. “Resources, Attitudes and Strategies: Interest group participation in the Bork confirmation.” American Review of Politics 15: 1–19.CrossRefGoogle Scholar
DeGregorio, Christine. 1997. Networks of Champions: Leadership, Access, and Advocacy in the U.S. House of Representatives. Ann Arbor, Michigan: University of Michigan Press.CrossRefGoogle Scholar
DeGregorio, Christine. 1998. “Assets and Access: Linking Lobbyists and Lawmakers in Congress.” In The Interest Group Connection: Electioneering, Lobbying, and Policymaking in Washington edited by Herrnson, Paul, Shaiko, Ronald, and Wilcox, Clyde. Chatham, New Jersey: Chatham House.Google Scholar
Destler, I. M. 2005. American Trade Politics, 4th edition. Washington, D.C.: Institute for International Economics.Google Scholar
Eismeier, Theodore J. and Pollock, Philip H. III. 1988. Business, Money, and the Rise of Corporate PACs in American Elections. New York, New York: Quorum Books.Google Scholar
Epstein, David and O'Halloran, Sharyn. 1995. “A Theory of Strategic Oversight: Congress, Lobbyists, and the Bureaucracy.” The Journal of Law, Economics and Organization 11: 227–255.Google Scholar
Furlong, Scott R. 2005. “Exploring Interest Group Participation in Executive Policymaking.” In The Interest-Group Connection, edited by Herrnson, Paul, Shaiko, Ronald, and Wilcox, Clyde. Washington, D.C.: CQ Press.Google Scholar
Report, GAO. 2002. “International Trade: Advisory Committee System Should be Updated to Better Serve U.S. Policy Needs.” U.S. GAO, GAO–02–876.Google Scholar
Gilligan, Thomas and Krehbiel, Keith. 1989. “Asymmetric Information and Legislative Rules with a Heterogeneous Committee.” American Journal of Political Science 33: 459–490.CrossRefGoogle Scholar
Gray, Virginia and Lowery, David. 1997. “Reconceptualizing PAC Formation: It's Not a Collective Action Problem, and It May be an Arms Race.” American Politics Quarterly 25: 319–346.CrossRefGoogle Scholar
Griffin, Jennifer J. and Dunn, Paul. 2004. “Corporate Public Affairs: Commitment, Resources, and Structure.” Business & Society 43: 196–220.CrossRefGoogle Scholar
Hall, Richard L. and Wayman, Frank W. 1990. “Buying Time: Moneyed Interests and the Mobilization of Bias in Congressional Committees.” American Political Science Review 84: 797–820.CrossRefGoogle Scholar
Hansen, John Mark. 1991. Gaining Access: Congress and the Farm Lobby, 1919-1981. Chicago, Illinois: University of Chicago Press.Google Scholar
Hart, David M. 2001. “Why Do Some Firms Give? Why Do Some Firms Give A Lot?: High-Tech PACs’, 1977-1996.” Journal of Politics 63: 1230–1249.CrossRefGoogle Scholar
Herrnson, Paul, Shaiko, Ronald, and Wilcox, Clyde. eds. 2005. The Interest Group Connection: Electioneering, Lobbying, and Policymaking in Washington. Washington, D.C.: CQ Press.Google Scholar
Hillman, Amy J. and Keim, Gerald D. 1995. “International Variation in the Business-Government Interface: Institutional and Organizational Considerations.” Academy of Management Review 20: 193–214.CrossRefGoogle Scholar
Hillman, Amy J. and Hitt, Michael A. 1999. “Corporate Political Strategy Formulation: A Model of Approach, Participation and Strategy Decisions.” Academy of Management Review 24: 825–842.CrossRefGoogle Scholar
Hillman, Amy J., Zardkoohi, Asghar, and Bierman, Leonard. 1999. “Corporate Political Strategies and Firm Performance: Indications of Firm-Specific Benefits from Personal Service in the U.S. Government.” Strategic Management Journal 20: 67–81.3.0.CO;2-T>CrossRefGoogle Scholar
Hillman, Amy J. 2005. “Politicians on the Board of Directors: Do Connections Affect the Bottom Line?” Journal of Management 31: 1–18.CrossRefGoogle Scholar
Holburn, Guy L.F. and Vanden Bergh, Richard G. 2008. “Making Friends in Hostile Environments: Political Strategy in Regulated Industries.” Academy of Management Review 33: 521–540.CrossRefGoogle Scholar
Hojnacki, Marie and Kimball, David C. 2001. “PAC Contributions and Lobbying Contracts in Congressional Committees.” Political Research Quarterly 54: 161–180.CrossRefGoogle Scholar
Hosmer, David W. and Lemeshow, Stanley. 2000. Applied Logistic Regression, 2nd edition. New York, New York: John Wiley and Sons.CrossRefGoogle Scholar
Jacobson, Gary C. 1983. The Politics of Congressional Elections. Boston, Mass.: Little, Brown and Company.Google Scholar
Keim, Gerald D. 2001. “Managing Business Political Activities in the USA: Bridging Theory and Practice.” Journal of Public Affairs 1: 362–375.CrossRefGoogle Scholar
Keim, Gerald D. and Baysinger, Barry D. 1988. “The Efficacy of Business Political Activity: Competitive Considerations in a Principal Agent Context.” Journal of Management 14: 163–180.CrossRefGoogle Scholar
Keim, Gerald D. and Zeithaml, Carl P. 1986. “Corporate Political Strategies and Legislative Decision Making: A Review and Contingency Approach.” Academy of Management Review 11: 828–843.CrossRefGoogle Scholar
Kollman, Ken. 1998. Outside Lobbying: Public Opinion and Interest Group Strategies. Princeton, New Jersey: Princeton University Press.CrossRefGoogle Scholar
Krehbiel, Keith. 1991. Information and Legislative Organization. Ann Arbor, Michigan: University of Michigan Press.CrossRefGoogle Scholar
Laird, Sam and Yeats, Alexander J. 1990. Quantitative Methods for Trade-Barrier Analysis. New York, New York: New York University Press.CrossRefGoogle Scholar
Langbein, Laura I. 1986. “Money and Success: Some Empirical Evidence.” Journal of Politics 48: 1052–1062.CrossRefGoogle Scholar
Lenway, Stefanie A. 1985. The Politics of U.S. International Trade. Boston, Mass.: Pitman.Google Scholar
Leone, Robert A. 1986. Who Profits: Winners, Losers and Government Regulation. New York, New York: Basic Books.Google Scholar
Levine, Bertram J. 2009. The Art of Lobbying. Washington, D.C.: CQ Press.Google Scholar
Leyden, Kevin M. 1995. “Interest Group Resources and Testimony at Congressional Hearings.” Legislative Studies Quarterly 20: 431–439.CrossRefGoogle Scholar
Lindblom, Charles E. 1977. Politics and Markets: The World's Political-Economic Systems. New York, New York: Basic Books.Google Scholar
Lord, Michael D. 2000. “Corporate Political Strategy and Legislative Decision Making: The Impact of Corporate Legislative Influence Activities.” Business & Society 39: 76–93.CrossRefGoogle Scholar
Lord, Michael D. 2003. “Constituency Building as the Foundation for Corporate Political Strategy.” Academy of Management Executive 17: 112–124.Google Scholar
Masters, Marick F. and Keim, Gerald D. 1985. “Determinants of PAC Participation among Large Corporations.” The Journal of Politics 47: 1158–1173.CrossRefGoogle Scholar
McCubbins, Mathew D. and Swartz, Thomas. 1984. “Congressional Oversight Overlooked: Police Patrols Versus Fire Alarms.” American Journal of Political Science 28: 165–179.CrossRefGoogle Scholar
McCubbins, Matthew D., Noll, Roger G., and Weingast, Barry R. 1987. “Administrative Procedures as Instrument Control.” Journal of Law, Economics and Organization 3: 243–277.Google Scholar
McCubbins, Matthew D., Noll, Roger G., and Weingast, Barry R. 1989. “Structure and Process, Politics, and Policy: Administrative Arrangement and the Political Control of Agencies.” Virginia Law Review 75: 431–482.CrossRefGoogle Scholar
McWilliams, Abigail, Van Fleet, David D., and Cory, Kenneth D. 2002. “Raising Rivals Costs through Political Strategy: An Extension of Resource Based Theory.” Journal of Management Studies 39 (5): 707–723.CrossRefGoogle Scholar
Menard, Scott W. 2010. Logistic Regression: From Introductory to Advanced Concepts and Applications. Los Angeles, California: Sage Publications.CrossRefGoogle Scholar
Meznar, Martin B. and Nigh, Douglas. 1995. “Buffer or Bridge? Environmental and Organizational Determinants of Public Affairs Activities in American Firms.” Academy of Management Journal 38: 975–996.CrossRefGoogle Scholar
Milyo, Jeffrey, Primo, David, and Groseclose, Timothy. 2000. “Corporate PAC Campaign Contributions in Perspective.” Business and Politics 2: 75–88.CrossRefGoogle Scholar
Mitnick, Barry M. 1993. Corporate Political Activity: The Construction of Competition in Public Affairs. Newbury Park, California: Sage.Google Scholar
Mizruchi, Mark S. 1992. The Structure of Corporate Political Action: Interfirm Relations and Their Consequences. Cambridge, Mass.: Harvard University Press.Google Scholar
Moe, Terry M. 1987. “An Assessment of the Positive Theory of ‘Congressional Dominance’.” Legislative Studies Quarterly 12: 475–520.CrossRefGoogle Scholar
Moe, Terry M. 1990. “Political Institutions: The Neglected Side of the Story.” Journal of Law, Economics, & Organization 6: 213–253.CrossRefGoogle Scholar
O'Halloran, Sharyn. 1994. Politics, Process, and American Trade Policy. Ann Arbor, Michigan: University of Michigan Press.CrossRefGoogle Scholar
New York Times. 26 June 2010, p. A1. “On Finance Bill, Lobbying Shifts to Regulations.”Google Scholar
Oliver, Christine and Holzinger, Ingo. 2008. “The Effectiveness of Strategic Political Management: A Dynamic Capabilities Framework.” Academy of Management Review 33: 496–520.CrossRefGoogle Scholar
Parker, Glenn and Parker, Suzanne. 2010. “Do Legislators Become Lobbyists Because of Training or to Realize Special-Interest Payoffs? A Human Capital Approach to Political Institutions.” unpublished conference paper. Presented at the 4th International Colloquium on Corporate Political Activity. Brookville, New York.Google Scholar
Peterson, Mark A. 1992. “The Presidency and Organized Interests: White House Patterns of Interest Group Liaison.” American Political Science Review 86: 612–625.CrossRefGoogle Scholar
Rothgeb, John M. Jr. 2001. U.S. Trade Policy: Balancing Economic Dreams and Political Realities. Washington, D.C.: CQ Press.CrossRefGoogle Scholar
Sabato, Larry. 1984. PAC Power. New York, New York: W.W. Norton.Google Scholar
Schott, Jeffrey J. and Buurman, Johanna W. 1994. The Uruguay Round: An Assessment. Washington, D.C.: The Institute for International Economics.Google Scholar
Schuler, Douglas A., Rehbein, Kathleen, Cramer, and Roxy D. 2002. “Pursuing Strategic Advantage Through Political Means: A Multivariate Approach.” Academy of Management Journal 45: 659–672.CrossRefGoogle Scholar
Shepsle, Kenneth A. and Weingast, Barry R. 1984. “Political Solutions to Market Problems.” American Political Science Review 78: 417–434.CrossRefGoogle Scholar
Sorauf, Frank J. 1988. Money in American Elections. Glenville, Illinois: Scott, Foresman/Little, Brown.Google Scholar
Tenpas, Kathryn D. 2005. “Lobbying the Executive Branch: Outside-In and Inside-Out.” In The Interest Group Connection: Electioneering, Lobbying, and Policymaking in Washington, edited by Herrnson, Paul, Shaiko, Ronald, and Wilcox, Clyde. Washington, D.C.: CQ Press.Google Scholar
Wall Street Journal. 7 May 2010, p. A1. “Regulator Ceded Oversight of Rig Safety to Oil Drillers.”Google Scholar
Weingast, Barry R. 1984. “The Congressional-Bureaucratic System: A Principal-Agent Perspective.” Public Choice 44: 147–191.CrossRefGoogle Scholar
Wilson, Graham K. 1990. “Corporate Political Strategies.” British Journal of Political Science 20: 281–288.CrossRefGoogle Scholar
Wilson, James Q. 1980. The Politics of Regulation. New York, New York: Basic Books.Google Scholar
Woolridge, Jeffrey M. 2002. Econometric Analysis of Cross Section and Panel Data, 2nd edition. Cambridge, Mass.: The MIT Press.Google Scholar
Wright, John R. 1990. “Contributions, Lobbying, and Committee Voting in the U.S. House of Representatives.” American Political Science Review 84: 417–38.CrossRefGoogle Scholar
Wright, John R., 2004. “Campaign Contributions and Congressional Voting on Tobacco Policy, 1980-2000.” Business and Politics 6: 1–23.CrossRefGoogle Scholar