Non-Market Strategy Literature Review: The Government Relations Component

Abstract

With the recent challenges for economic development (particularly in emerging countries) and more complex regulatory environments (for instance, due to more information publicly available, technology advancement and innovative disruptions impacts on businesses), the non-market strategy field of study has been receiving more attention, being considered by many authors (e.g.

Nonmarket Negotiations: Leveraging performance when negotiating with Governments, Influencers, Media, NGOs, Communities and other key stakeholders

“…This is due to its substantial participation, influence, and impact on economies and organizations. Research in this field demonstrates that it can provide guidelines and effective recommendations to address real issues and enhance practitioners' actions concerning the relationship with Governments (Navarro, 2021). This contextualization reinforces the importance of externalities such as ESG (Environmental et al), diversity, inclusion, and reputation, among others.…”

“…In traditional negotiations, the pursuit of mutual benefit options is based on objective criteria, with clear gains and losses identified. In the nonmarket arena, there are two processes beneficial to complement this, seeking co-creation of perceived value: CONFORT and OD²P (Navarro, 2021), both detailed on the following topic. In terms of main objectives when structuring a negotiation, we also need to notice the following aspects, precisely important when dealing with the nonmarket:…”

“… When mapping the negotiation process, remember to perform a complete stakeholder mapping. An additional tool, a Power x Interest matrix (Navarro, 2021), can be useful for this.  When preparing to negotiate at the nonmarket, use the strategic thinking process, with the 5Ps adapted to this environment, as detailed in the next topic.…”

“…There are many references available regarding the growing nonmarket field of study. Not so many works, however, focus on Government being a main force influencing organizations' external environment (Navarro, 2019b). Even fewer works deal with the specific topic of negotiating with Governments (Salacuse, 2008).…”

“…"CONFORT" APPROACH CONFORT (Navarro, 2021) refers to a fundamental aspect in the Government Relations (Government relations) area, which is to have "comfort" with what is being advocated/negotiated, in all views (legal, technical, ethical, cultural, among others). Also, the acronym brings 3 aspects that can be used as a checklist process still in the realm of ideas, before starting activities related to planning or implementation.…”