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Firm behavior and the evolution of activism: Strategic decisions and the emergence of protest in US communities

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  • Alessandro Piazza
  • Fabrizio Perretti

Abstract

Research summary How do firms' strategic decisions affect the emergence and evolution of activism? We examine this question through a study of protests against nuclear power plants in the United States. We find that the decision to cancel construction of a nuclear unit—a substantial victory for activists—is associated with an upsurge in antinuclear protest activity, as emboldened activists stay mobilized even once the level of threat abates. We also find that when a firm decides to complete a nuclear power plant, thereby marking a defeat for activists, antinuclear protests wind down and we witness an increase in mobilization towards other causes. We discuss the implications of our findings for the study of the interaction between social movements and firms. Managerial summary The interaction between firms and activists is markedly strategic, and episodes of confrontation are often rooted in decisions made by firms. In this article, we examine how decisions taken by firms might impact activism in local communities through a comprehensive study of mobilization targeting nuclear power plants in the United States between 1960 and 1995. We find that when a firm cancels a proposed nuclear unit, antinuclear protest activity increases, as emboldened activist press the advantage. When a firm decides to complete a nuclear power plant, however, thereby defeated activists will demobilize and focus their attention on other causes. Companies should thus carefully consider how their decisions might affect activist mobilization, especially in contexts where opposition from local communities is a significant factor.

Suggested Citation

  • Alessandro Piazza & Fabrizio Perretti, 2020. "Firm behavior and the evolution of activism: Strategic decisions and the emergence of protest in US communities," Strategic Management Journal, Wiley Blackwell, vol. 41(4), pages 681-707, April.
    • Handle: RePEc:bla:stratm:v:41:y:2020:i:4:p:681-707
    DOI: 10.1002/smj.3116
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    References listed on IDEAS

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    1. Mas, José M. & Gómez, Andrés, 2021. "Social partners in the digital ecosystem: Will business organizations, trade unions and government organizations survive the digital revolution?," Technological Forecasting and Social Change, Elsevier, vol. 162(C).
    2. Fremeth, Adam R. & Holburn, Guy L. F. & Piazza, Alessandro, 2021. "Activist Protest Spillovers into the Regulatory Domain: Theory and Evidence from the U.S. Nuclear Power Generation Industry," OSF Preprints s39h2, Center for Open Science.

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