The development of business-government strategies by diversified firms

This paper uses grounded theory to explore internal (intrafirm) conflicts i n the formulation of business-government strategies by corporations with di versified business units. We find that three types of conflict exist within firms: conflict over proactive policy positions advocated by the firm (pre policy issues), conflict over reactive internal distribution of compliance costs/benefits (postpolicy issues), and representational conflict (e.g., in dividual business units vs, corporate representation in the external public policy arena). We also develop a grounded framework for organizational str uctures for conflict resolution in the strategic management of government r elations, based upon our case studies, and find a relationship between part icular structures and the degree of diversification. Copyright (C) 2000 Joh n Wiley & Sons, Ltd.