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Political connectedness and business performance: evidence from Turkish industry rankings

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  • Özcan, Gül Berna
  • Gündüz, Umut

Abstract

This paper examines the degree to which political connections affect business rankings through a statistical analysis of Turkey's industry rankings between 2003 and 2011. The analysis demonstrates that business performance is associated with connectedness through industry and firm level data. We show that political connectedness varies according to the firm's channel of access to obtain favouritism either through direct personal ties or institutional networks. Ideological motivations emerge to be significant in mobilizing, shaping and tying firm behaviour to broader political agendas. In the conclusion we discuss the impact of deepening connectedness on long-term business fortunes and political institutions.

Suggested Citation

  • Özcan, Gül Berna & Gündüz, Umut, 2015. "Political connectedness and business performance: evidence from Turkish industry rankings," Business and Politics, Cambridge University Press, vol. 17(1), pages 41-73, April.
    • Handle: RePEc:cup:buspol:v:17:y:2015:i:01:p:41-73_00
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    Cited by:

    1. Wong, Wai-Yan & Hooy, Chee-Wooi, 2018. "Do types of political connection affect firm performance differently?," Pacific-Basin Finance Journal, Elsevier, vol. 51(C), pages 297-317.
    2. Lisa Ahsen Sezer & Gül Berna Özcan, 2024. "Local champions and change of governments: a longitudinal analysis of firms’ political ties in Gaziantep, Turkey," Journal of Economic Geography, Oxford University Press, vol. 24(2), pages 263-283.

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