Corporate Political Strategy Formulation: A Model of Approach, Participation, and Strategy Decisions

Two general approaches to political action (transactional and relational), 2 levels of participation (individual and collective), and 3 types of generic political strategies (information, financial incentive, and constituency building) are examined, thus presenting a comprehensive taxonomy of political strategies. In addition, firm and institutional variables that affect the likelihood of making specific decisions within the formulation model are identified. The result is a decision-tree model of political strategy formulation that integrates and extends prior diffused work.