Purpose: Firms influence a government to their advantage in one of two ways: either through lobbying a government to change the rule, or through bribing bureaucrats to circumvent the rule. The purpose of this paper is to investigate whether and under what conditions do corporate political activities facilitate firm growth in a multinational context, especially in developing economies.Design/methodology/approach: This study is based on the data of the World Bank’s Enterprise Survey, conducted by the World Bank in the 2002 to 2006 period in 12 countries. To deal with a multilevel structure, the authors applied multilevel regression as the main analysis method.Findings: The analysis reveals that both political activities are prevalent in emerging markets, but they play very different roles on firm growth. The authors also find that the effect of lobbying is more pronounced in politically durable countries where firms can secure their vested benefits by lobbying.Originality/value: The paper contributes to the corporate political activities literature by investigating the distinguishing and contingent role of bribery and lobbying on firm performance.

Purpose: This research investigates how and why firms adopt inclusive diversity activities, identifying the mechanisms behind firms involved in lesbian, gay, bisexual and transgender (LGBT)–friendly pursuits. By integrating resource dependence theory, institutional theory and stakeholder theory, the authors argue that a firm's LGBT friendliness is affected by marketing orientation and the external political environment.Design/methodology/approach: This study uses the Corporate Equality Index, as reported by the Human Rights Campaign, of 460 (1,540 firm-year observations) firms in the United States between 2006 and 2019.Findings: This study finds a significant, positive relationship between a firm's marketing orientation and LGBT-friendly activities. This research also determines that this relationship is weakened by state-level diversity policies and country-level political uncertainty.Originality/value: The study results provide unique theoretical and practical implications for the debate on inclusive corporate policy in similar global markets.

This study explores how slack resources can enhance firms’ sustainable competitive advantage by combining economics and organizational behavior within a strategic management framework. Specifically, we examine the relationships between three types of slack resources—available, recoverable, and potential—and three environmental dimensions: munificence, dynamism, and complexity. Our dataset comprises 34,261 observations from 4,045 listed firms across 34 provincial-level administrative regions in China, spanning the years 1993 to 2021. The results indicate that each type of slack resource has an inverted U-shaped relationship with performance, suggesting the existence of a Pareto optimal level of resource allocation. However, this relationship and the position of the Pareto optimal point are not constant. Environmental factors moderate the relationship between slack resources and performance, leading to fluctuations in Pareto optimal values and per-unit value. By expanding and integrating the resource-based view and the structure–conduct–performance paradigm, we explain the relationships between various slack resources and different industrial environments. Based on our findings, we provide suggestions for enhancing sustainable competitive advantage.