In 2013, the energy and natural resources sector spent $359 million lobbying. Such spending is largely perceived as a strategy by industry to oppose regulation. Research has barely begun to investigate how firm-level performance on salient political issues affects corporate political strategy....

This paper presents a model that complements the research stream of transaction cost economies with the dynamic capabilities approach. The paper shows that, even though technological alliances involving specific assets deployed in emerging industries are exposed to high transaction costs, they...