In this developmental article, the authors outline a five-stage system to classify levels of relationship engagement (LRE) between firms and government actors when developing their political-market strategies (PMS) as part of a wider stakeholder management programme. In an attempt to develop the research agenda in this increasingly important area, the authors propose a set of hypotheses to drive forward the research agenda. Overall, we argue that firms can develop PMS into a dynamic capability but further research is needed to determine whether or not the capability developed is first or second order (i.e. contributing to other sources of competitive advantage).
Copyright © 2009 John Wiley & Sons, Ltd.