Effective nonmarket strategies: A model of political capabilities

This paper contributes to the growing literature of firms’ nonmarket strategies. We argue that there is, deduced from the resource-based view, a set of nonmarket capabilities, static as well as dynamic, which is the principal determinant for the effectiveness of nonmarket strategies. We propose a model that distinguishes nonmarket capabilities according to their source of effectiveness, either targeting organizational adaptation internal to the firm or the policy-maker external to the firm. In a second dimension, nonmarket capabilities can be classified according to their purpose of evaluation or execution. We argue that the effectiveness of nonmarket strategies for a sustainable competitive advantage for the firm depends, among others, on the development of interlinked set of these nonmarket capabilities. We conclude with research recommendations on the empirics of nonmarket capabilities to further precise the determinants for effective nonmarket strategies.