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How powerful political ties appropriate resources and how weaker organizations protect themselves: A case study from Indonesia

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  • Marleen Dieleman

    (National University of Singapore)

  • Henky Widjaja

    (Leiden University)

Abstract

We advance the resource dependence literature on appropriation of organizational resources by powerful partners, focusing on political ties. Using a unique emerging market case of a venture with political ties, we advance theory by unpacking how political connections can hurt the organization by increasing the permeability of organizational boundaries. Our extensions highlight the crucial role of control mechanisms for politically connected organizations.

Suggested Citation

  • Marleen Dieleman & Henky Widjaja, 2019. "How powerful political ties appropriate resources and how weaker organizations protect themselves: A case study from Indonesia," Asia Pacific Journal of Management, Springer, vol. 36(1), pages 61-86, March.
    • Handle: RePEc:kap:asiapa:v:36:y:2019:i:1:d:10.1007_s10490-018-9563-2
    DOI: 10.1007/s10490-018-9563-2
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    2. Mustafa F. Özbilgin & Cihat Erbil & Nur Gündoğdu, 2024. "Political tie diversity and inclusion at work in Asia: a critical view and a roadmap," Asian Business & Management, Palgrave Macmillan, vol. 23(3), pages 374-392, July.
    3. Röell, Christiaan & Osabutey, Ellis & Rodgers, Peter & Arndt, Felix & Khan, Zaheer & Tarba, Shlomo, 2022. "Managing socio-political risk at the subnational level: Lessons from MNE subsidiaries in Indonesia," Journal of World Business, Elsevier, vol. 57(3).
    4. Amrita Saha & Vikrant Shirodkar & Thomas C. Lawton, 2023. "Bimodal lobbying and trade policy outcomes: Evidence from corporate political activity under uncertainty in India," Journal of International Business Policy, Palgrave Macmillan, vol. 6(1), pages 24-46, March.

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