Business as a Collaborative Partner: Understanding Firms’ Sociopolitical Support for Policy Formation

Abstract

AbstractWhile many scholars have discussed the merits of collaborative governance, especially for addressing complicated modern policy challenges, the literature has paid less attention to how business can serve as an effective collaborative partner during the formation of mandatory policies and regulations. Drawing on scholarship in the management sciences and combining it with literature in public administration and public policy, the authors elaborate on four distinct types of business responses to proposed regulations based on degrees of political activity and social responsiveness: defensive, reactive, proactive, and anticipatory. They then characterize the reasons why proactive firms are more likely to be valuable collaborative partners with policy makers and public managers: their engagement may avoid costly stalemates that frequently hinder policy making and help develop cost‐effective, flexible policy approaches to complex social problems.