Antitrust holdup source, cross-national institutional variation, and corporate political strategy implications for domestic mergers in a global context

Strategic Management Journal

Volumn 26, Issue 8, 2005, Pages 769-790

  Clougherty, Joseph A ^a  

^a WZB BERLIN SOCIAL SCIENCE CENTER   (Germany)

Author keywords

Antitrust policy; Corporate political strategy; Merger reviews; Non market strategy

Indexed keywords

COMPETITION; INVENTORY CONTROL; MARKETING; MERGERS AND ACQUISITIONS; PUBLIC POLICY; RESEARCH AND DEVELOPMENT MANAGEMENT;

ANTITRUST POLICY; CORPORATE POLITICAL STRATEGY; MERGER REVIEWS; NON-MARKET STRATEGY;

STRATEGIC PLANNING;

EID: 21944447003     PISSN: 01432095     EISSN: None     Source Type: Journal    
DOI: 10.1002/smj.473     Document Type: Review

References (105)

1. Aplin JC, Hegarty WH. 1980. Political influence: strategies employed by organizations to impact legislation in business and economic matters. Academy of Management Journal 23(3): 438-450.
2. Auletta K. 2001. World War 3.0: Microsoft and its Enemies. Random House: New York.
3. Bare Act. 1999. The Monopolies and Restrictive Trade Practices Act, 1969. Universal Law Publishing: Delhi, India.
4. Barney JB. 1991. Firm resources and sustained competitive advantage. Journal of Management 17: 99-120.
5. Barney JB. 2001. Competence explanations of economic profits in strategic management: some policy implications. Paper presented at the Academy of Management Meetings, Washington, DC.
6. Barros PP, Cabrai L. 1994. Merger policy in open economies. European Economic Review 38: 1041-1055.
7. Baysinger BD. 1984. Domain maintenance as an objective of business political activity: an expanded typology. Academy of Management Review 9: 248-258.
8. Becker GS. 1983. A theory of competition among pressure groups for political influence. Quarterly Journal of Economics 98: 371-400.
9. Bentley AF. 1908. The Process of Government. University of Chicago Press: Chicago, IL.
10. Boddewyn JJ, Brewer TL. 1994. International-business political behavior: new theoretical directions. Academy of Management Review 19(1): 119-143.
11. Boner RA, Krueger R. 1991. The basics of antitrust policy: a review of ten nations and the European Communities. World Bank Technical Papers No. 160. World Bank: Washington, DC.
12. Boston W, Dreazen YJ. 2001. U.S. appears poised to approve Deutsche Telekom acquisition. Wall Street Journal Europe 5 April: 1.
13. Bouwman T. 1995. The 1995 mediawars in Holland. Before the International Federation of the Periodical Press (FIPP) Congress, 27 September.
14. Campbell AN, Trebilcock MJ. 1997. Interjurisdictional conflict in merger review. In Competition Policy in the Global Economy, Waverman L, Comanor WS, Gato A (eds). Routledge: London; 89-126.
15. Clougherty JA. 2001. Globalization and the autonomy of domestic competition-policy: an empirical test on the world airline industry. Journal of International Business Studies 32(3): 459-478.
16. Clougherty JA. 2003. Nonmarket strategy for merger reviews: the roles of institutional independence and international competitive effects. Business and Society 42(1): 115-143.
17. Clougherty JA, Zhang A. 2005. Export-orientation and domestic merger policy: theory and some empirical evidence. Canadian Journal of Economics 38(3) (forthcoming).
18. Coate MB, Higgins RS, McChesney FS. 1990. Bureaucracy and politics in FTC merger challenges. Journal of Law and Economics 33: 463-482.
19. Competition Bureau. 1991. Merger Enforcement Guidelines. Government of Canada: Ottawa, Canada.
20. Conner KR. 1991. A historical comparison of resource-based theory and five schools of thought within industrial organization economics: do we have a new theory of the firm? Journal of Management 17: 121-154.
21. Cornielje O. 2002. Tight oligopolies. Before the 'Competition Act Under Review' Workshop, 9 April, The Hague, The Netherlands.
22. Doern GB. 1996. Comparative competition policy: boundaries and levels of political analysis. In Comparative Competition Policy: National Institutions in a Global Market, Doern GB, Wilks S (eds). Clarendon Press: Oxford; 7-39.
23. Downs A. 1957. An Economic Theory of Democracy. Harper & Row: New York.
24. Drucker PF. 1974. Management: Tasks, Responsibilities, Practices. Harper & Row: New York.
25. Dunning JH. 1997. Introduction. In Governments, Globalization, and International Business, Dunning JH (ed). Oxford University Press: Oxford; 1-28.
26. Dutz MA, Vagliasindi M. 2000. Competition policy implementation in transition economies: an empirical assessment. European Economic Review 44: 762-772.
27. Epstein E. 1969. The Corporation in American Politics. Prentice-Hall: Englewood Cliffs, NJ.
28. Epstein E. 1980. Business political activity: research approaches and analytical issues. In Research in Corporate Social Performance and Policy, Vol. 2, Preston L (ed). JAI Press: Greenwich, CT; 1-56.
29. European Commission. 2000. External and Intra-European Union Trade: Statistical Yearbook. Office for the Official Publication of the European Communities: Luxembourg.
30. Evans P. 1995. Embedded Autonomy: States and Industrial Transformation. Princeton University Press: Princeton, NJ.
31. Faith RL, Leavens DR, Tollison RD. 1982. Antitrust pork barrel. Journal of Law and Economics 25: 329-342.
32. Farrell J, Shapiro C. 1990. Horizontal mergers: an equilibrium analysis. American Economic Review 80(1): 107-126.
33. Fisher FM. 1987. Horizontal mergers: triage and treatment. Journal of Economic Perspectives 1: 23-40.
34. Getz KA. 1993. Selecting corporate political tactics. In Corporate Political Agency: The Construction of Competition in Public Affairs, Mitnick BM (ed). Sage: Newbury Park, CA; 242-273.
35. Goldstein J. 1993. Ideas, Interests and American Trade Policy. Cornell University Press: Ithaca, NY.
36. Graham EM, Richardson JD. 1997. Conclusions and recommendations. In Global Competition Policy, Graham EM, Richardson JD (eds). Institute for International Economics: Washington DC; 547-578.
37. Graham EM, Warner M. 1994. Multinationals and competition policy in North America. In Multinationals in North America, Eden L (ed). University of Calgary Press: Calgary, Canada; 463-508.
38. Greene WH. 1990. Econometric Analysis. Macmillan: New York.
39. Head K, Ries J. 1997. International mergers and welfare under decentralized competition policy. Canadian Journal of Economics 30(4b): 1104-1123.
40. Hillman AJ, Hitt M. 1999. Corporate political strategy formulation: a model of approach, participation, and strategy decisions. Academy of Management Review 24(4): 825-842.
41. Hillman AJ, Keim G. 1995. International variation in the business-government interface: institutional and organizational considerations. Academy of Management Review 20(1): 193-214.
42. Hillman AJ, Zardkoohi A, Bierman L. 1999. Corporate political strategies and firm performance: indications of firm-specific benefits from personal service in the U.S. government. Strategic Management Journal 20(1): 67-81.
43. Kalt JP, Zupan MA. 1984. Capture and ideology in the economic theory of politics. American Economic Review 74(3): 279-300.
44. Keim GD. 1981. Foundations of a political strategy for businesses. California Management Review 23(3): 41-48.
45. Keim GD, Baysinger BD. 1988. The efficacy of business political activity: competitive considerations in a principal-agent context. Journal of Management 14(2): 163-180.
46. Keim GD, Zeithaml CP. 1986. Corporate political strategies and legislative decision making: a review and contingency approach. Academy of Management Review 11: 828-843.
47. Kovacic WE. 1992. The influence of economics on antitrust law. Economic Inquiry 30(2): 294-306.
48. Kovacic WE, Shapiro C. 2000. Antitrust policy: a century of economic and legal thinking. Journal of Economic Perspectives 14(1): 43-60.
49. Krueger AO. 1974. The political economy of the rentseeking society. American Economic Review 64: 291-303.
50. Kwoka JE. 1999. Commitment to competition: an assessment of antitrust agency budgets since 1970. Review of Industrial Organization 14: 295-302.
51. Lenway SA, Murtha TP. 1994. The state as strategist in international business research. Journal of International Business Studies 25: 513-535.
52. Lenway SA, Rehbein K. 1991. Leaders, followers and free riders: an empirical test of variation in corporate political involvement. Academy of Management Journal 34(4): 893-905.
53. Levinsohn J. 1997. Competition policy and international trade. In Fair Trade and Harmonization: Prerequisites for Free Trade?, Bhagwati JN, Hudec RE (eds). MIT Press: Cambridge, MA; 329-356.
54. Long WF, Schramm R, Tollison RD. 1973. The economic determinants of antitrust activity. Journal of Law and Economics 16: 351-364.
55. Mansfield E, Busch M. 1994. Political economy of non-tariff barriers. Discussion Paper No. 39, Center for International Studies, University of Southern California.
56. McChesney FS, Shughart WF II. 1995. Introduction and overview. In The Causes and Consequences of Anti-trust: The Public Choice Perspective, McChesney FS, Shughart WE II (eds). University of Chicago Press: Chicago, IL; 1-5.
57. Melamed AD. 2000. Promoting sound antitrust enforcement in the global economy. Address by the Acting Assistant Attorney General, Antitrust Division, U.S. Department of Justice. Before the Fordham Corporate Law Institute: 27th Annual Conference on International Antitrust Law and Policy, 19 October, New York.
58. Meuller DC. 1997. Merger policy in the United States: a reconsideration. Review of Industrial Organization 12: 655-685.
59. Milgrom P. 1988. Employment contracts, influence activities and organization design. Journal of Political Economy 96: 42-60.
60. Milgrom P, Roberts J. 1988. An economic approach to influence activities in organizations. American Journal of Sociology 94: 154-179.
61. Milner HV, Keohane RO. 1996. Internationalization and domestic politics: an introduction. In Internationalization and Domestic Politics, Keohane RO, Milner HV (eds). Cambridge University Press: Cambridge, MA; 3-24.
62. Mitnick BM. 1993. Corporate Political Agency: The Construction of Competition in Public Affairs. Sage: Newbury Park, CA.
63. Mitnick BM. 2001. The uses of political markets. Paper presented at the Academy of Management Meetings, Washington, DC.
64. Murtha T, Lenway SA. 1994. Country capabilities and the strategic state: how national political institutions affect multinational corporations' strategies. Strategic Management Journal, Summer Special Issue 15: 113-129.
65. Neumann M. 1990. Industrial policy and competition policy. European Economic Review 34: 562-567.
66. Nilssen T. 1997. On the consistency of merger policy. Journal of Industrial Economics 45(1): 89-100.
67. North DC. 1981. Structure and Change in Economic History. W.W. Norton: New York.
68. North DC. 1990. Institutions, Institutional Change and Economic Performance. Cambridge University Press: Cambridge, MA.
69. OECD. 1992-2000. Competition Policy in OECD Countries. OECD: Paris.
70. Ostry S. 1997. Globalization, domestic policies and the need for harmonization. In Competition Policy in the Global Economy: Modalities for Cooperation, Waverman L, Comanor WS, Gato A (eds). Routledge: London & New York; 29-39.
71. Penrose E. 1959. The Theory of the Growth of the Firm. Wiley: New York.
72. Pittman R. 1977. Market structure and campaign contributions. Public Choice 31: 37-58.
73. Priem RL, Butler JE. 2001. Is the resource-based 'view' a useful perspective for strategic management research? Academy of Management Review 26(1): 22-40.
74. Rubin PH. 1995. What do economists think about antitrust? A random walk down Pennsylvania Avenue. In The Causes and Consequences of Anti-trust: The Public Choice Perspective, McChesney FS, Shughart WF II (eds). University of Chicago Press: Chicago, IL; 33-61.
75. Rumelt R, Teece D, Schendel D. 1991. Strategic management and economics. Strategic Management Journal, Winter Special Issue 12: 5-29.
76. Sanekata K, Wilks S. 1996. The Fair Trade Commission and the enforcement of competition policy in Japan. In Comparative Competition Policy: National Institutions in a Global Market, Doern GB, Wilks S (eds). Clarendon Press: Oxford; 102-138.
77. Scherer FM. 1996. International trade and competition policy. Discussion Paper No. 96-18. Zew Industrial Economics and International Management Series, Mannheim, Germany.
78. Schuler DA. 1996. Corporate political strategy and foreign competition: the case of the steel industry. Academy of Management Journal 39(3): 720-737.
79. Schumpeter J. 1950. Capitalism, Socialism, and Democracy. Harper: New York.
80. Shaffer B. 1995. Firm-level responses to government regulation: theoretical and research approaches. Journal of Management 21(3): 495-514.
81. Sirower ML. 1997. The Synergy Trap: How Companies Lose the Acquisition Game. Free Press: New York.
82. Sorgard L. 1997. Domestic merger policy in an international oligopoly: the Nordic market for electricity. Energy Economics 19: 239-253.
83. Stigler GJ. 1971. The theory of economic regulation. Bell Journal of Economic and Management Science 2: 3-21.
84. The Economist. 1999. Industrial gases: underpressure. 24 June: 83.
85. The Economist. 2000. Europe's merger morass. 23 September: 85.
86. The Economist. 2001a. GE/Honeywell: Welch squelched. 23 June: 73.
87. The Economist. 2001b. Antitrust: merger muddle. 23 June: 13-14.
88. The Economist. 2001c. Consolidate or liquidate. 6 December: 64.
89. Tilton M. 1996. Restrained Trade: Cartels in Japan's Basic Materials Industries. Cornell University Press: Ithaca, NY.
90. Trebilcock MJ. 1996. Reconciling competition laws and trade policies: a new challenge to international co-operation. In Comparative Competition Policy: National Institutions in a Global Market, Doern GB, Wilks S (eds). Clarendon Press: Oxford; 268-301.
91. Truman D. 1951. The Governmental Process. Knopf: New York.
92. U.S. Congress. 1992. Fewer Airlines, Higher Fares. Senate, AdHoc Subcommittee on Consumer and Environmental Affairs, 102nd Congress, 2nd Session, 21 February 1992.
93. U.S. DOJ. 1998. Antitrust Division Manual. U.S. Department of Justice - Antitrust Division: Washington DC.
94. U.S. GAO. 1973. Clarifying Webb-Pomerene Act Needed to Help Increase U.S. Exports. U.S. General Accounting Office: Washington, DC.
95. Vachris MA. 1996. Federal antitrust enforcement: a principal-agent perspective. Public Choice 88: 223-238.
96. Vogel DJ. 1996. The study of business and politics. California Management Review 38(3): 146-165.
97. Waldman DE. 1985. The Economics of Antitrust: Cases and Analysis. Little, Brown: Boston, MA.
98. Wall LD, Eisenbeis RA. 2000. Financial regulatory structure and the resolution of conflicting goals. Journal of Financial Services Research 17(1): 223-245.
99. Wernerfelt B. 1984. A resource-based view of the firm. Strategic Management Journal 5(2): 171-180.
100. White LJ. 1987. Antitrust and merger policy: a review and critique. Journal of Economic Perspectives 1: 13-22.
101. Williamson OE. 1968. Economies as an antitrust defense: the welfare tradeoffs. American Economic Review 58: 18-36.
102. Yano M. 2001. Trade imbalance and domestic market competition policy. International Economic Review 42(3): 729-750.
103. Yoffie DB. 1987. Corporate strategies for political action: a rational model. In Business Strategy and Public Policy, Marcus A, Kaufman A, Beam D (eds). Quorum Books: New York; 43-60.
104. Yoffie DB, Kwak M. 2001. Playing by the rules: how Intel avoids antitrust litigation. Harvard Business Review 79(6): 119-122.
105. Zhang A, Chen H. 2002. Horizontal mergers in a liberalizing world economy. Pacific Economic Review 7(2): 359-376.