Table V Strategic responses to... | Emerald Publishing

Table V

Strategic responses to institutional contradictions

Institutional Factors	Safran–Zodiac Political logic	Renault
Institutional Factors	Safran–Zodiac Political logic	Financial logic
Context	HIGH Environmental uncertainty and interconnectedness because of the social and institutional embeddedness of actors in the field of shareholder activism
Multiplicity	HIGH
Constituents	MODERATE Activist professional foreign investor TCI and allied minority shareholders	HIGH
Constituents		State as shareholder	Coalition of institutional investors including state as shareholder
Cause	HIGH for TCI minority investors’ rights LOW for the state because of lack of legitimacy	HIGH for state as shareholder in its efficiency objective LOW for state because of lack of legitimacy	MODERATE
Cause			Say-on-Pay
Content	HIGH TCI pressure the French state to conform to corporate governance protections for minority investors	HIGH Renault management mobilized board to oppose legislation	MODERATE Renault ignored AFEP–MEDEF recommendation
Control	MODERATE	MODERATE
	TCI broadcasts violations to all responsible parties and threatens legal actions	State as future controlling shareholder forced to reduce its financial participation		Proxy battle on an emerging and non-binding resolution led by Phitrust and Proxinvent – two French professional activists
Corporate responses	Compromise	Avoid

Institutional Factors	Safran–ZodiacPolitical logic	Renault
Institutional Factors	Safran–ZodiacPolitical logic	Financial logic
Context	HIGHEnvironmental uncertainty and interconnectedness because of the social and institutional embeddedness of actors in the field of shareholder activism
Multiplicity	HIGH
Constituents	MODERATEActivist professional foreign investor TCI and allied minority shareholders	HIGH
Constituents		State as shareholder	Coalition of institutional investors including state as shareholder
Cause	HIGH for TCI minority investors’ rightsLOW for the state because of lack of legitimacy	HIGH for state as shareholder in its efficiency objectiveLOW for state because of lack of legitimacy	MODERATE
Cause			Say-on-Pay
Content	HIGHTCI pressure the French state to conform to corporate governance protections for minority investors	HIGHRenault management mobilized board to oppose legislation	MODERATERenault ignored AFEP–MEDEF recommendation
Control	MODERATE	MODERATE
	TCI broadcasts violations to all responsible parties and threatens legal actions	State as future controlling shareholder forced to reduce its financial participation		Proxy battle on an emerging and non-binding resolution led by Phitrust and Proxinvent – two French professional activists
Corporate responses	Compromise	Avoid