Non-Market Strategy Flashcards
ai^3 framework
Bach & Allen (2010)
- NMS can be managed as strategically as core business
- Competitive Edge - NMS is necessary in an increasingly tough market environment.
ia^3 model - used to gain perspective as to the non-market environment
1) What’s the issue?
2) Who are the actors?
3) What are their interests?
4) In which arena do they meet?
5) What information will move the issue in this arena
6) What assets are needed to prevail in this arena
Indonesian Dreams
Fisman
- In a study on Indinesia, fisman found that a large part of a firms value is derived from their political connections
4I’s of the non-market environment
Baron (1995)
1) Issues
2) Institutions
3) Interests
4) Information
TWO approaches to viewing non-market environment
- See it as a 6th force, or view it as another way in which you can alter the 5 forces. (Integrated approach).
Revolving door phenominon
Blanese i Vidal et al. (2012)
- Lobbyists connected to US senators see a 24% fall in generated revenue when their connection leaves office
- Political connections have a huge impact on the returns of AMERICAN LOBBYISTS.
2 main differences between ME and NME
Doh J et al. (2012)
- Market environment consists of businesses; Non-market environment consists of social, political and legal structures
- In the market firms compete for resources, non-market firms compete for opinion, ethics & social responsibility
Strengths of NGO’s
Yaziji (2004)
- NGO’s are perfectly places in order to use non-market environments. So firms should partner with them.
Four Strengths:
1) Legitimacy
2) Awareness of social forces
3) Distinct networks
4) Specialised technical expertise
Utility companies
Holborn & Vanden Bergh (2014)
- Utility companies in the USA will increase their political contributions in the months leading up to a merger, in order to build up regulatory fervour.
- They empirically evaluate how an integrated approach can aide
