*Names in bold indicate Presenter
Using the U.S. federal climate change policy context, this paper undertakes a systematic assessment of why some firms support mandatory climate regulation, while others do not. Drawing on scholarship in both the policy and management sciences, we investigate whether S&P 500 firms’ organizational capabilities influence their political support and potential collaborative intentions. After controlling for selection bias related to firms’ decisions to adopt organizational capabilities, our results indicate that in fact some types of organizational capabilities-organizational learning, continuous improvement, and stakeholder engagement capabilities- are significant predictors of firms’ support for mandatory climate regulations. These findings offer important dimensionality to our existing knowledge of firms’ varied responses to regulations, as well as refuting the conventional wisdom of businesses as a single monolithic interest group. This study also sheds light on businesses as public policy drivers, informing policy makers and public managers alike of the importance of building coalitions with private sector to pass broad federal climate change legislation. Our findings contribute to the broader discussion about firms as critical partners in policy-making (Donahue and Zeckhauser, 2011; Fiorino, 2006) and inform the circumstances under which policy makers can establish cooperation with firms and produce win-win outcomes, while overcoming the tragic logic of the collective action dilemma.