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Previous studies of business‐government relations have tended to take either a macro approach (using a single theoretical framework to explain all business‐government relations) or a micro approach (one that fails to explain why business‐government relations have not improved over time). This article applies Lowi′s four‐part typology of policy types. In order to test the typology′s usefulness, a survey of business executives and government officials was carried out. The findings confirmed the thesis: business satisfaction with its relationship to government will be highest in the case of distributive policies, and decline to lowest in the case of constituent policies. A “meso‐level” theoretical framework is recommended to provide not only a better understanding of the multi‐levelled character of business‐government relations, but also future research with a practical orientation.

The purpose of the study is to propose a new perspective to explain how China's rapid growth in patenting is partially driven by corporate strategic patenting to influence local governments. The authors highlight the role of strategic patenting and local government-business relations in creating the gap between the patent boom and underlying technological progress in China.

The authors investigate the relationship between local government-business relations and corporate strategic patenting behaviors, measured as a higher ratio of patent filings to patent awards, by collecting data from three successive NADS surveys of government-business relations in 292 Chinese municipalities, paired with detailed patenting and subsidy data of 3,756 publicly listed corporations obtained through text mining.

The authors find that, while R&D investment and patent subsidies do drive corporate patenting, firms in jurisdictions with lower-quality government-business relations are more likely to engage in strategic patenting. Moreover, the negative impact of government-business relations on strategic patenting is moderated by political connections, as the strategic patenting of firms without political connections is more sensitive to government-business relations. The authors further show that firms obtain significant benefits from patenting in the form of additional subsidies from local innovation and industrial policies in the years following.

Rolling back patent subsidies will reduce strategic patenting to a limited extent. The local governments in emerging markets need to increase the capacity to implement industrial policy and provide market-based opportunities for firms to access innovation inputs.

The authors provide an updated and fresh perspective to understand the phenomenon of China's patent boom by showing that patenting can be driven by corporate strategies to adapt to local institutions and influence government policy. The authors extend the analysis of strategic patenting to emerging markets.

This paper examines the development of government-business relations in China’s recent economic reform and development. The paper first provides a review of theoretical issues about the role of government in economic development and the concepts of business promotion and government regulation. Next, the paper introduces major policies and changes that have been developed by the Chinese government. On the business promotion side, it includes major changes in incentive policy, government structure, and management operation that have been implemented during the reform years. On the government regulation side, the paper identifies new challenging issues in consumer, environment, and labor protection that may affect China’s future development. Finally, lessons and implications about the development of Chinese government-business relations are emphasized in the conclusion section.

In a globalized world where emerging markets are more important than ever, there is an increasing pressure on international businesses and governments to work together. The set of facilities known as commercial diplomacy combines the interests of both by highlighting new markets and investment opportunities.

In this chapter, we present a literature review based on 56 relevant publications to assess what we currently know of this important activity.

The results indicate that research on commercial diplomacy consists of many subtopics, resulting in a patchy understanding of the topic as a whole.

We discuss why integrative research focusing on the business–government relationship and the organization and the value of commercial diplomacy are needed from an international business perspective.

In this paper, we regard public procurement as an instrument used by the government for indirect support of enterprises. In this context, we have investigated the place that public procurement occupy in statebusiness interrelations. Using data from a large survey of Russian manufacturing enterprises conducted in 2009 we show that in Russia public procurement cannot be regarded as a component in the system of exchanges, and the extent of combination between direct and indirect support depends on the level of government. At the federal level direct and indirect instruments of government support complement each other. At the regional and local levels the effect of mutual complementation can be observed only in relations with firms, which conceal information about their ownership structure and are supposedly affiliated with regional and local bureaucrats. In relations with other firms at regional and local levels direct and indirect support substitutes each other.

This paper examines the evolution of two separate fields, which are essentially concerned with the same issues but are framed by different academic and professional disciplines and practice. It appears that public affairs management researchers often fail to take into account parallel literature from the discipline of public relations — even when purporting to offer an interdisciplinary approach. Equally, the public relations literature frequently fails to speak the language of business management and narrowly defines such key business activities as marketing, policy and strategy. In this paper, the authors present evidence prescribing the differing evolution of public affairs and public relations. They compare and contrast public affairs and public relations in terms of their definitions, scholarship, survey evidence, leading writers, academic and professional associations and educational programme content. They conclude by offering several suggestions for closing the gap between the two areas.

Much has been written about the behaviour of muntinational corporations (MNCs) and their relations with the nation state. However, there seems room for closer examination of the dynamics of such relations between developing economies and MNCs operating in sectors of strategic importance to the developing economy. The research reported here examines relations between international shipping companies and Bangladesh. The paper starts by reflecting on the growth and influence of the MNC, and the varied ways that such influence is manifest. This provides a backdrop against which to examine relations between shipping MNCs and Bangladesh. Following this review, the research design is sketched out, as a study of relations between Bangladesh as an emerging economy and shipping MNCs in pursuit of their business objectives. The study finds that regardless of political ambitions by the host economy, and regardless of the ethical proclamations of MNCs, it is the everyday challenges and opportunities of doing business that shapes ethical practices. Corporate officers, in dealing with local officials, take a pragmatic approach to achieving business objectives, while being fully aware that such pragmatism is often at odds with corporate moral intention. The study also finds that what counts as corporate socially responsible behaviour is politically defined.

International business theory leans heavily on neoclassical economics, ignoring its unrealistic assumptions and the many changes in the environment. The chapter calls for a revision of the theory to a contingency theory. The major contingent elements analysed are the political system, business–government and NGOs relations, industries, regimes, ownership patterns, the degree of reliance on ethical behaviour, the institutional environment and social norms.

The purpose of this paper is to investigate the effect of corruption level in steering the business–government relations (BGRs) in developing countries. It also examines the moderating effect of firm size.

Using robust tobit and probit models, this study tests the response behavior of 9787 firms from 23 African countries to their government's policy and regulations and the direct effect of corruption control level in their response decisions. The authors also perform several other additional analyses to ensure the robustness of the findings, including change analysis, two-stage model and recursive bivariate model.

The result shows that corruption level is among the significant factors that drive BGRs exponentially. The finding points out that, there is a strong alliance of business and government in more corrupt countries. Moreover, the impact of corruption level exacerbates when the firm is bigger.

Managers should focus more on activities that create long-term sustainable advantage. Valuable time of the senior managers should not waste on negotiating government policies to earn a short term advantages.

It is evident that legal and transparent government alliances can lead to economic rent for firms. However, it is important to note that any alliance based on corruption and illegality is short-lived and ultimately detrimental to long-term prosperity. Therefore, it is crucial for firms to prioritize ethical business practices and build relationships with governments that prioritize transparency and accountability.

Given the detrimental impact of corruption on economic progress, it is crucial for Africa policy-makers to prioritize reforms aimed at reducing its adverse effect. By implementing ethical and transparent business practices, countries can attract more investment and promote economic growth.

This study contributes to the existing literature on the passive form of political connectivity/activity and to what extend corruption level affect the political activities of firms.