theorists tend to view firmís corporate political activity (CPA) efforts as the
pursuit of legitimacy which makes it more embedded in the institutional
structure and subject to less uncertainty. If, as such asserts, firm behavior
is shaped by taken-for-granted institutional prescriptions, how firms envision
and enact risk-taking activities to the contexts in which they are embedded?
This concept article aims to integrate legitimacy based view and behavioral
agency model for a more comprehensive framework on risk-taking decisions of
CPA-active firms. That
is, both the ability as well as motivation are important to firmsí risk taking
decision. The article contributes to the CPA literature and strategy research.
It is not only bridging non-market strategy with market-favored outcomes, but
also integrating institutional logic and the behavioral perspective for a more
complete and predictive view of firmsí risk taking behavior than either theory
JEL classification numbers: C9,
political activity, legitimacy, key decision maker, risk taking.