Chung, Y. H., Huang, S. Y., and Ding, Z. L. 2026. Does Political Activism Matter for Firm Innovation Capability?. NTU Management Review, 36 (1): 107-170. https://doi.org/10.6226/NTUMR.202604_36(1).0003
Yu-Hsuan Chung, Department of Accounting and Information Technology, National Chung Cheng University
Shaio-Yan Huang, Department of Accounting and Information Technology, National Chung Cheng University
Zih-Ling Ding, MediaTek Inc.
Abstract
This study examines the impact of firms’ engagement in political activism on their corporate innovation capability, focusing on listed firms in Taiwan and analyzing legislative elections from 2008 to 2019. This study finds that firms’ political activism, as indicated by support for legislative candidates through political donations, is negatively associated with corporate innovation activities. Furthermore, the negative impact on innovation capability is more pronounced in electronics firms that make political donations. These findings suggest that crowding-out and the political resource curse reduce the benefits of corporate political activism, thereby hindering innovation.
Keywords
political activismpolitical contributionsinnovation capabilities