Political connectedness and business performance: evidence from Turkish industry rankings


Ozcan G. B. , Gunduz U.

BUSINESS AND POLITICS, cilt.17, ss.41-73, 2015 (ESCI İndekslerine Giren Dergi) identifier identifier

  • Cilt numarası: 17 Konu: 1
  • Basım Tarihi: 2015
  • Doi Numarası: 10.1515/bap-2013-0037
  • Dergi Adı: BUSINESS AND POLITICS
  • Sayfa Sayıları: ss.41-73

Özet

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.