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Outsourcing government relations: Use of outside lobbyists when in-house capacity exists

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  • Chan, Ken

Abstract

To advance their interests by shaping public policies and influencing government decision-making, companies use internal resources, outside lobbyists, or trade associations to lobby. This article examines companies’ use of outside lobbyists even though in-house capacity exists and explores how these resources complement each other. The study aims to offer practical advice to companies and lobbying consultancies regarding the optimal use of internal and external government relations resources. Another aim of the study is to examine how companies monitor the lobbying efforts of the consultancies they hire. Semistructured interviews were conducted with 35 in-house government relations managers and executives to accomplish these goals. The research showed that companies engage with outside lobbyists for two leading reasons: to help with specific issues that have no internal expertise and to provide surge capacity. The interviews identified six ways companies use outside lobbyists: they provide (1) strategic advice, (2) external validation, (3) political intelligence, (4) contact plans, (5) logistical support, and (6) assistance with tough conversations.

Suggested Citation

  • Chan, Ken, 2023. "Outsourcing government relations: Use of outside lobbyists when in-house capacity exists," Business Horizons, Elsevier, vol. 66(2), pages 215-224.
    • Handle: RePEc:eee:bushor:v:66:y:2023:i:2:p:215-224
    DOI: 10.1016/j.bushor.2022.06.004
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    References listed on IDEAS

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    1. Miguel Espinosa, 2021. "Labor Boundaries and Skills: The Case of Lobbyists," Management Science, INFORMS, vol. 67(3), pages 1586-1607, March.
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    Cited by:

    1. Ken Chan, 0000. "The collective voice of businesses: How companies can effectively use trade associations in corporate political activity," Proceedings of Economics and Finance Conferences 14115871, International Institute of Social and Economic Sciences.

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