Political connectedness and business performance: evidence from Turkish industry rankings

Ozcan G. B. , Gunduz U.

BUSINESS AND POLITICS, vol.17, no.1, pp.41-73, 2015 (Journal Indexed in ESCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 17 Issue: 1
  • Publication Date: 2015
  • Doi Number: 10.1515/bap-2013-0037
  • Title of Journal : BUSINESS AND POLITICS
  • Page Numbers: pp.41-73


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.