Analysis of Non-Market Strategies Implemented by Firms In Emerging Economies (The Case of Indonesia)

Abstract

Over the last two decades, a growing body of research, both theoretical and empirical, on exploring the relationship between business and government has been emerging. While in the past, the performance of the firms mainly relied on market environment, many scholars revealed that non-market environment also play an important role in the firm’s performance. Non-market strategies include political donation, lobbying, CSR and business owners turning into politicians themselves. This proposed research will identify and examine the nature of the non-market environment as well as non-market strategies implemented by firms in emergent economies. In addition, the proposed research will analyse the relationship between non-market strategies and the performance of firms. In-depth case studies will be carried out in two firms in the region South Sulawesi, Indonesia. The expected outcomes of this study are: 1) knowledge of how the non-market environment influences the choice of non-market strategies in emergent economies; 2) knowledge on how non-market strategies influence business performance; 3) clarification of the role of government in an emergent economy with particular emphasis on government policies on business development under volatile market conditions. It is expected that this study will fill in the gap in literature on various types of non-market strategies in conditions of emergent economies.