AbstractThis paper examines the impact of the ‘political contingency’ upon management strategy in New Zealand's newly established public enterprises. It is argued that an unambiguous state strategy of readying the organizations swiftly for privatization gave management a clear mandate for radical restructuring. The coincidence of commercial and political rationality greatly reduced the likelihood of direct political intervention in the operation of the organizations and led to substantial changes to traditional patterns of industrial relations. Variations in management strategy reflected different organizational circumstances rather than differing applications of the political continge