Navigating the dynamics of corporate political contributions: a systematic literature review and research agenda

Purpose This systematic review comprehensively examines corporate political contributions (CPC), exploring their antecedents, evolving mechanisms and diverse organizational outcomes. It offers a holistic understanding of the business–politics relationship and proposes a managerial decision-making framework for strategic CPC engagement. The study also identifies gaps in the literature and suggests future research avenues. Design/methodology/approach This study employs a systematic review process to assess the CPC literature. Utilizing leading journals and databases like Web of Science, Scopus and EBSCO, we apply rigorous screening criteria to select 72 relevant papers critically analyzed using the “Antecedents-Phenomenon-Consequences” framework. Findings The research identifies two primary dynamics influencing CPC: “essential need” for firm survival and “elective choice.” It reveals that CPC strategies impact various firm performance metrics, including market returns, operational performance and policy outcomes. Research is concentrated in the US, with a limited focus on developing economies. Future research should focus on industry-specific studies, timing of contributions and cross-national comparisons. Practical implications This paper provides managers with a comprehensive framework for CPC engagement, helping them navigate political dynamics, optimize contributions and enhance firm performance while maintaining ethical and strategic considerations. Originality/value This paper systematically reviews the complex political strategy of CPC, providing a nuanced understanding of how CPC operates across different countries and contexts. It offers academics and professionals insights to develop robust theories and make informed decisions in a modern, complex business environment.