An Introduction and Examination of Firm-on-Firm Activism

This research examines firm-on-firm activism, defined as public, coercive actions taken by corporations against another corporation to influence them socio-politically. I investigate how consumers evaluate this emerging form of corporate activism using costly signaling theory. I propose that consumers will perceive firm-on-firm activism as more authentic due to the financial and nonfinancial costs incurred by the firm, ultimately leading to increased consumer support. An online experiment will manipulate the type of corporate activism (firm-on-firm vs. traditional) and measure perceived costs, authenticity, and consumer support intentions. This study contributes to the corporate activism literature by introducing and examining a novel form of activism, extending the application of costly signaling theory to corporate behavior, and investigating the mediating role of perceived authenticity in consumer responses to corporate activism. The findings will provide valuable insights for marketers and corporate leaders navigating the complex landscape of socio-political engagement and stakeholder management.