• Abstract

    UNVEILING POLITICAL ACTIVITIES OF MULTINATIONALS OPERATING IN BRAZIL: PROCUREMENT LOBBYING

    Published date: 19/12/2023

    Objective: The objective of this research is to analyze the procurement lobbying activities of subsidiaries of multinational corporations (MNEs) operating in Brazil.

    Design/Methodology/Approach: Study of 16 cases describing processes, individuals, and the organization of government relations departments within multinational corporations operating in Brazil with significant government sales involvement.

    Results: We argue that procurement lobbying (activities supporting business dealings with the government) consists of essentially different activities from policy lobbying (activities focused on influencing public policies).

    Limitations/Research Implications: Given the case study method, external validity should be confirmed through subsequent studies that can strengthen the hypotheses raised here.

    Practical Implications: The possibilities of different organizational arrangements for procurement lobbying activities explore managerial decision-making between leveraging government relationship synergies and the potential increase in risks associated with Corporate Political Actions (CPA).

    Theoretical Implications: The contributions of this article expand the scope of CPA activities. The article describes the micro foundations of procurement lobbying activity and highlights the existence of different organizational arrangements for procurement lobbying activities.

    Originality/Value: While several articles point to the influence of government sales concentration as a factor in engaging in CPA or even establish a relationship between CPA and government contracts, there is limited evidence of the mechanisms and processes of CPA aimed at influencing the award of government contracts (procurement lobbying).

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