The Danger of Not Listening to Firms: Government Responsiveness and the Goal of Regulatory Compliance

dc.contributor.author

Malesky, E

dc.contributor.author

Taussig, M

dc.date.accessioned

2018-12-10T03:31:09Z

dc.date.available

2018-12-10T03:31:09Z

dc.date.issued

2017-10

dc.date.updated

2018-12-10T03:31:07Z

dc.description.abstract

© Academy of Management Journal. Firms in emerging economies exhibit dangerously low rates of compliance with government regulations aimed at protecting society from the negative externalities of their operations. This study builds on individual-level theories from organizational behavior (procedural justice) and political science (deliberative democracy) to develop new firmlevel theory on the mechanism by which a firm is more likely to comply with a regulation after participating in its design by government. We hypothesize and find supporting evidence that such participation increases the likelihood of compliance by positively shaping the firm's view of government legitimacy, but only if the firm views government as responsive to its input. Without this responsiveness, regulatory compliance is even less likely than if the firm did not participate at all. Our empirical work is novel in its focus on the political activities of firms not only within the authoritarian-ruled emerging economy context of Vietnam, but also through study of a highly representative sample dominated by small and medium sized enterprises. We discuss how our work contributes to nonmarket strategy literatures on corporate social responsibility, self-regulation, and corporate political activity, as well as its implications for public policy.

dc.identifier.issn

0001-4273

dc.identifier.issn

1948-0989

dc.identifier.uri

https://hdl.handle.net/10161/17728

dc.publisher

Academy of Management

dc.relation.ispartof

Academy of Management Journal

dc.relation.isversionof

10.5465/amj.2015.0722

dc.title

The Danger of Not Listening to Firms: Government Responsiveness and the Goal of Regulatory Compliance

dc.type

Journal article

duke.contributor.orcid

Malesky, E|0000-0001-5737-9195

pubs.begin-page

1741

pubs.end-page

1770

pubs.issue

5

pubs.organisational-group

Trinity College of Arts & Sciences

pubs.organisational-group

Duke

pubs.organisational-group

Political Science

pubs.publication-status

Published

pubs.volume

60

Files

Original bundle

Now showing 1 - 1 of 1
Loading...
Thumbnail Image
Name:
MaleskyMosly_AJPS_2018.pdf
Size:
618.93 KB
Format:
Adobe Portable Document Format
Description:
Accepted version