Social Nonmarket Strategy’s Impact On Firm Financial and Non-Financial Performance

Authors:

Keywords: Nonmarket strategy, NMS, market strategy, SNMS, strategic political emphasis, corporate political analysis, uncertainty, strategic capabilities, strategic political management

Abstract: Many firms, particularly those in developed economies, are embracing a redefined sense of purpose and emphasizing social outcomes alongside financial ones. In doing so, they face challenges within and across borders due to misaligned stakeholder influences and preferences. We introduce social nonmarket strategy (SNMS), defining it as goal-directed, firm-level, symbolic or instrumental non-neutral participation in social discourse. We surveyed 202 managers in the US and employed SmartPLS to test a model linking SNMS, marketing emphasis, and firm performance. Our analysis suggests that SNMS may not always translate into profits but can promote non-financial performance. The firm’s emphasis on marketing partially mediated the impact of SNMS on both the financial and non-financial dimensions of performance. We anticipate similar findings in other market economies, but additional research is warranted.