Paper info: Fight Environmental Hostility! How Negotiation Can Govern Firm-Institutions Relationships
Fight Environmental Hostility! How Negotiation Can Govern Firm-Institutions Relationships
University of Illinois at Chicago
Place of Publication
The paper was published at the 19th IMP-conference in Lugano, Switzerland in 2003.
This paper aims to highlight the interaction between firms and institutional actors in hostile environments, and to describe the contribution that negotiation and communication give to this interaction. Agreeing with those who identify relationship management as determinant of firms? success, we recognize its importance in business to business, but our focus is towards the dynamics between firms and governments. In considering this topic, we start from the concept of hostile environment, not referring only to the competitive arena, but also to the macroenvironmental level. This is the general context in which there are forces that have important influences on organizational assets, strategies, and firm performances. In particular, we observe the impact of the firm's perceptions on the institutions? performances. This is propaedeutic for describing the strategies in order to reduce environmental hostility, and it also highlights the remarkable role of communication as a tool for managing firm-institutions relationships.After considering the general characteristics of this tool of coordination, we face the subject focusing on interpersonal communication techniques, as elements to work on in order to guarantee positive outputs, both for the firm and the institution. Picturing this from a pragmatic perspective, we analyzed the case of a company operating in Calabria, Italy, considered as a hostile environment. The analysis points out that managing firm-institutions relationships concurs to increase the survival possibilities in hostile environments, and to lead the firms to entrepreneurial success.