DESIGNING GOVERNMENT RELATIONS AS A STRATEGIC CAPABILITY FOR MANAGING REGULATORY ISSUES
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Date
2026-05
Authors
Martynenko, Artur
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Abstract
This study examines how large companies organize and use Government Relations (GR) functions to manage regulatory issues and how these practices can be translated into a managerial framework. GR is viewed not only as a representational or communication activity, but as a firm-level strategic capability that connects changes in the regulatory environment to internal business decisions. The research focuses on large companies operating in Ukraine in a volatile institutional context shaped by wartime disruption, regulatory change, and European integration pressures.
The study adopts a qualitative cross-case approach based on six semi-structured interviews with senior practitioners responsible for GR or closely related functions. The interview material was analyzed through thematic coding in order to identify recurring organizational patterns and differences across cases.
The findings indicate that companies organize GR in markedly different ways. Some rely on fragmented and reactive arrangements, while others use more formalized and strategically integrated models. Stronger GR models are associated with earlier issue detection, clearer prioritization, better cross-functional coordination, more deliberate stakeholder engagement, and closer integration with management decision-making. Weaker models tend to remain person-dependent, weakly formalized, and late in their involvement.
Based on these findings, the study develops a practical framework for designing and improving GR as a strategic capability for managing regulatory issues. The framework combines structural, process, and enabling dimensions and includes a three-level maturity logic. The study contributes to theory by clarifying GR as a firm-level strategic capability and offers a context-sensitive managerial tool for firms operating under regulatory uncertainty.
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government relations, non-market strategy, regulatory issue management, dynamic capabilities, corporate political activity, Ukraine
Citation
Martynenko, Artur. (2026). DESIGNING GOVERNMENT RELATIONS AS A STRATEGIC CAPABILITY FOR MANAGING REGULATORY ISSUES. Kyiv: American University Kyiv. URI: https://er.auk.edu.ua/handle/234907866/203