The development of business-government strategies by diversified firms

Brian Shaffer, Amy J. Hillman

Research output: Contribution to journalArticlepeer-review

143 Scopus citations


This paper uses grounded theory to explore internal (intrafirm) conflicts in the formulation of business-government strategies by corporations with diversified business units. We find that three types of conflict exist within firms: conflict over proactive policy positions advocated by the firm (prepolicy issues), conflict over reactive internal distribution of compliance costs/benefits (postpolicy issues), and representational conflict (e.g., individual business units vs. corporate representation in the external public policy arena). We also develop a grounded framework for organizational structures for conflict resolution in the strategic management of government relations, based upon our case studies, and find a relationship between particular structures and the degree of diversification.

Original languageEnglish (US)
Pages (from-to)175-190
Number of pages16
JournalStrategic Management Journal
Issue number2
StatePublished - Feb 2000
Externally publishedYes


  • Business-government strategies
  • Diversification
  • Political and regulatory environment
  • Public policy

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management


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