The Role of Corporate Political Activity in Shaping Organizational Outcomes: A Systematic Literature Review

Corporate Political Activity (CPA) has gained growing academic attention as a non-market strategy for influencing policy, reducing uncertainty, and enhancing firm-level outcomes. However, existing studies remain fragmented, often confined to single industries, regions, or political mechanisms, with limited cross-country comparisons and minimal exploration of digital political engagement. Moreover, no recent comprehensive synthesis has captured post-2020 developments across diverse institutional and industrial contexts, leaving gaps in understanding the broader patterns and boundary conditions of CPA effectiveness.

This study conducts a Systematic Literature Review (SLR) of peer-reviewed empirical articles published between 2020 and 2025, guided by the PRISMA framework. Articles were systematically identified, screened, and synthesized from the Scopus database. Out of 589 initial articles, 20 met the inclusion criteria.

The findings show that CPA is primarily positioned as an independent variable affecting performance, innovation, and competitiveness. While CPA frequently generates positive outcomes, risks such as agency problems, reputational damage, and bribery emerge in weak governance environments. The review also reveals that integrating Corporate Social Responsibility (CSR) with CPA strengthens legitimacy and strategic impact, particularly in politically volatile contexts.

Theoretically, this study contributes by mapping empirical trends, clarifying contextual boundary conditions, and proposing an integrated conceptual framework that bridges resource-based and institutional perspectives on CPA. Practically, it offers guidelines for aligning political engagement with ethical governance, enabling firms to leverage CPA-CSR integration to navigate complex institutional environments while maintaining legitimacy and stakeholder trust.