Using a qualitative, grounded theory approach, this study examined the public policy interactions of small firms. The small firms' cognitive understanding and sensemaking approaches to government are revealed through an examination of successful and failed influence attempts. Embedded in these attempts, a set of factors (Issue Characteristics and Influence Process) were discovered, which affect the outcome of an influence effort. Issue Characteristics reflected attributes chief executive officers (CEOs) looked for when examining an issue and include Issue Impact, Issue Clarity, and Issue Image. Influence Process factors focus on how influence is acquired and exercised, and include Issue Champion, Persistence, and Coalition Development.
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