Business-government Relations Research Articles

EU Commercial Policy in a Multipolar Trading System

In recent years the bipolar multilateral trading system of the post-war years has given way to a multipolar alternative. Although many specifics have yet to be determined, some contours of this new trade policy landscape are coming into focus. This article examines their implications for the EU's external commercial policy. Particular attention is given to both the state of business-government relations and the propensity to liberalise under the auspices of reciprocal trade agreements by Brazil, India, and China, the potential new poles of the world trading system.

The impact of the traditional business–government relationship on the Europeanization of Japanese firms

This article, based on 30 interviews with firms, business associations, and EU institutions, explores the Europeanization/harmonization of Japanese firms' lobbying strategies, and assesses how they have adapted to the constantly evolving EU public policy-making system. We provide an empirical investigation of interaction between traditional Japanese lobbying practices and the EU institutional environment in forming firms' preferences for particular lobbying strategies in the automobile and electronics sectors. In short, a key objective is to highlight the variations in Japanese lobbying, with special attention to the firms' efforts to blend into the EU policy-making process, on the one hand, and their embeddedness in traditional business culture, on the other. This article concludes that Japanese firms have restructured their political behaviours to suit the EU policy-making process; however, the degree of such Europeanization of lobbying strategies has significantly varied across sectors and firms owing to the ranging influence of several institutional factors.

Singapore: Campaigning for the Future

The year 2006 witnessed several important events in Singapore, all of which have long-term political and economic significance. First, Singapore held its eleventh general election since independence, the first led by Lee Hsien Loong since becoming Prime Minister in August 2004 and Secretary General of the People's Action Party (PAP). Second, Singapore hosted the Annual Meetings of the Boards of Governors of the International Monetary Fund (IMF) and the World Bank Group, amidst civil society organizations' protest and negative international press coverage on the Singapore government's refusal to admit a number of activists. Third, the investment of government-linked Temasek in Shin Corp, the family business of Thailand's former Prime Minister Thaksin Shinawatra, who was deposed in a military coup in September, weathered legal problems and continued to develop into a policy lesson in government-business relations for both the countries involved. Singapore's economy picked up steam in the middle of the year, and experienced a relatively robust growth rate of 7.7 per cent. At the end of the year, the PAP government announced its intention to increase the Goods and Services Tax (GST) by 2 per cent, that is, from 5 to 7 per cent. The century-old Penal Code was given an extensive review and public feedback was sought, but Internet free speech was curtailed with the imposition of stricter regulations. Smoke haze from fires in Indonesia covered most of the country in October, prompting once again an urgent call by ASEAN to help Indonesia fight the forest fires. Two stalwarts of independent Singapore, S. Rajaratnam, Minister for Foreign Affairs (1965-80) and Deputy Prime Minister (1980-85), and Lim Kim San, who was credited with the public housing programme, passed away at the age of 81.

Capitalism in Southeast Asia Through the Lenses of Corporate Finance: What We Know and What We Don't

This study looks at capitalism in Southeast Asia through the lenses of modern corporate finance, based on contract and ownership theories of the firm. The paper limits its survey to recent literature that uses firm-level micro data of Southeast Asia corporate firms. Three major common issues of Southeast Asian capitalism that have shaped the modern corporate sector of the region are explored: overseas Chinese businesses, business groups, and government-business relations. The paper also shows that, despite the growing interest in the region, the literature is still very sparse and many questions remain unanswered.

Leading the Dance? Power and Political Resources of Business Lobbyists

Studies of lobbying try to determine the influence and power of non-governmental actors on public policy. Although influence is very difficult to measure empirically, many continue to push for better research design to solve the problem. Through case studies of business-government relations in the United States and the European Union, this article argues that the difficulties with power and influence concern not only their operationalisation, but they also reflect conceptual confusions. Trying to determine the ‘winners’ and ‘losers’ of a policy issue can be misleading, since power also structures apparently harmonious exchange relationships. The perceived success of business lobbying in the cases studied depended on the governments' receptiveness to their demands, which in turn depended on strategic advantages they saw for themselves in international negotiations. Even when business appears to lead the dance, it is more promising to look at resource distribution and the interdependence of both sides, instead of assuming the domination of business power over policy outcomes.

EU Commercial Policy in a Multipolar Trading System

In recent years the bipolar multilateral trading system of the post-war years has given way to a multipolar alternative. Although many specifics have yet to be determined, some contours of this new trade policy landscape are coming into focus and in this short essay I examine their implications for the European Union's external commercial policy. Particular attention is given to both the state of business-government relations and the propensity to liberalise under the auspices of reciprocal trade agreements by Brazil, India, and China; the potential new poles of the world trading system. I consider the likely consequences of these developments, plus factors internal to both the European Union and the United States, for the possible content of future multilateral trade initiatives.

The Impact of Business-Government Relationship on Location Choice by Korean Firms in China: A Comparative Case Study

Since China embarked on market-oriented reform in 1979, various kinds of economic zones have been set up to attract foreign direct investment (FDI). These economic zones often compete against each other for investment, offering better policies and creating more incentives. In most local economic zones, red tape is significantly reduced because of the establishment of local zone authorities with consolidated power to oversee FDI-related matters. Foreign invested enterprises (FIEs) need to deal with much less number of government agencies in these zones than outside these zones. But on the other hand, relationship with these zone authorities becomes crucial for FIEs targeting or operating in these zones. Prior research shows FIEs in China often make their location choices based on the preferential policies offered by different regions. But a neglected factor is that how the business-government relationship might affect foreign firms??location choice between these zones within the same locality. This paper studies the impact of the bilateral FIE-zone authority relationship on FIEs??location decisions. Drawing upon location literature and using data from case studies, the paper provides evidence on the impact of business-government relationship on two levels of location choice by Korean firms in China and advances propositions for future research.

Government–business relationships through partnerships for sustainable development: the green network in Denmark

Moving from largely command and control measures in the 1970s and 1980s, through cleaner production initiatives and self-regulatory initiatives in the 1990s, the emphasis is increasingly on using networks and partnerships between private firms, NGOs, government and civil society as levers for promoting a greening of industry. In terms of public–private partnerships, one of the foremost Danish initiatives is the Green Network in the county of Vejle. This initiative currently involves more than 250 companies and ten public bodies. The network started in 1994 and has grown in size and importance ever since. Fundamentally, it aims at providing new forms of co-operation between public authorities and private companies. The vehicle for this was initially a voluntary environmental statement by companies, who wished to be members. With the passing of time, however, the demands and pressures on both companies and public bodies have increased. Hence, the tools and means employed—outside as well as inside the network—have developed accordingly. In this paper, a distinct partnership mode of government–business relationships—a collaborative network with respect, trust and mutual legitimacy—is discussed and related to the Green Network way of doing things. The conclusion is that through dialogue, reflexivity and the establishment of an enabling environment, public–private partnerships can become useful vehicles in societies' move towards sustainability.

The Business of Lobbying in China

The Business of Lobbying in China. By Scott Kennedy. Cambridge, MA: Harvard University Press, 2005. 278p. $49.95.In this fascinating monograph, Scott Kennedy explores the nature of state–society relations through the lens of business lobbying. He begins his work by criticizing existing approaches in comparative politics, which often try to fit various countries into a few standard models of state–society relations: pluralism, corporatism, clientelism, and monism. Given the complexity and dynamism in China's economy, Kennedy makes the astute observation that no single model suffices to describe the complex business–government relations in China. As he puts it succinctly, “countries do not just have one political economy, but multiple political economies” (p. 160).

The Accountable corporation: v.1: Corporate governance; v.2: Business ethics; v.3: Corporate social responsibility; v.4: Business-government relations

The Accountable corporation: v.1: Corporate governance; v.2: Business ethics; v.3: Corporate social responsibility; v.4: Business-government relations

"Wrapped up in Cotton Wool": Political Integration of Private Entrepreneurs in Rural China

Previous articleNext article No Access"Wrapped up in Cotton Wool": Political Integration of Private Entrepreneurs in Rural ChinaBjörn AlpermannBjörn Alpermann Search for more articles by this author PDFPDF PLUS Add to favoritesDownload CitationTrack CitationsPermissionsReprints Share onFacebookTwitterLinkedInRedditEmail SectionsMoreDetailsFiguresReferencesCited by The China Journal Volume 56Jul., 2006 Published on behalf of the Australian Centre on China in the World at the Australian National University Article DOIhttps://doi.org/10.2307/20066185 Views: 28Total views on this site Citations: 4Citations are reported from Crossref Copyright The China JournalPDF download Crossref reports the following articles citing this article:Xiaoke Zhang, Tianbiao Zhu Understanding Business–Government Relations in China: Changes, Causes and Consequences, (Dec 2017): 3–45.https://doi.org/10.1007/978-3-319-64486-8_1Changdong Zhang Trapped into Collusion: The Under-Institutionalized Taxation System and Local Business–State Relations in China, (Dec 2017): 139–163.https://doi.org/10.1007/978-3-319-64486-8_5J. Hsu Layers of the Urban State: Migrant Organisations and the Chinese State, Urban Studies 49, no.1616 (May 2012): 3513–3530.https://doi.org/10.1177/0042098012443860Christopher A. McNally, Teresa Wright Sources of social support for China’s current political order: The “thick embeddedness” of private capital holders, Communist and Post-Communist Studies 43, no.22 (Jun 2010): 189–198.https://doi.org/10.1016/j.postcomstud.2010.03.007

Government-Business Relations in the Construction of Mercosur

Democratic consolidation was the top priority of re-democratized Argentina and Brazil. Regional integration was also part of this goal from two perspectives: from the outside, through a treaty that diminished the scope for political manoeuvring by the military and increased international support for the incumbent administrations, and; from within, through encouragement of a proactive role for business in integration that would give it democratic legitimacy, while, at the same time, exercising democratic practices. Argentine and Brazilian political classes expected to combine these two aspects but soon had to face business reluctance. Government-business relations in the construction of Mercosur reflected government attempts to balance the trade-off between the approaches from without and from within. Although business was largely excluded from the strategic formulation of integration, in a democratic context, governments have to accommodate societal interests. This occurred through a significant overlap between powerful business interests and the executive's plans. The achievement of integration helped consolidate democracy and the choices made by political elites drove forward the democratic process.

First mover advantages in international business and firm-specific political resources

While the currently prevailing conceptual framework of first mover advantages (FMAs) specifies various market mechanisms through which first movers can gain pioneering benefits, it is incomplete by failing to consider the role of political resources in creating FMAs. In this context, this article aims to add the political mechanism to the current classification of FMA mechanisms. The article further serves as a window to an understanding of the long-term process of acquiring, sustaining, and exploiting firm-specific political resources in international business, which has been neglected in prior studies on business–government relations. Detailed analysis of three case studies suggests that the causal relationship between political resources and FMAs is a complex one; while non-market strategies can be used successfully by first movers, they can also be used by late movers to neutralize FMAs. The article proposes a model for understanding the link between FMAs and political resources.

International Business Negotiation in a Globalizing World: Reflections on the Contributions and Future of a (Sub) Field

AbstractResearch on international business negotiation has been underway for 35 years. It has developed within two major paradigms: the macro-strategic, which focuses on organizational wholes, and the micro-behavioral, which focuses on individuals. The former further divides into business-government relations and interfirm relationship streams, while the latter branches into comparative and intercultural studies. While this article summarizes these bodies of literature, its main purpose is to offer a critique of this research, consider its contribution to practice and to the field of international negotiation, and stimulate ideas for future research.

The business of lobbying in China

In this timely work, Scott Kennedy documents the rising influence of business, both Chinese and foreign, on national public policy in China. China's shift to a market economy has made businesses more sensitive to their bottom line and has seen the passage of thousands of laws and regulations that directly affect firms' success. Companies have become involved in a tug of war with the government and with each other to gain national policy advantages, often setting the agenda, providing alternative options, and pressing for a favored outcome. Kennedy's comparison of lobbying in the steel, consumer electronics, and software industries shows that although companies operate in a common political system, economic circumstances shape the nature and outcome of lobbying. Factors such as private or state ownership, size, industry concentration, and technological sophistication all affect industry activism. Based on over 300 in-depth interviews with company executives, business association representatives, and government officials, this study identifies a wide range of national economic policies influenced by lobbying, including taxes, technical standards, and intellectual property rights. These findings have significant implications for how we think about Chinese politics and economics, as well as government-business relations in general.

‘Big Deal’ or big disappointment? The continuing evolution of the South Korean developmental state

This article analyses the Kim Dae-jung government's industrial realignment (‘Big Deals’) policy in post-crisis Korea, which offers a valuable insight into the state's role in managing the transition from a developmental state to a free-market economy and into the changing nature of government–business relations. Although Kim was committed to creating a free-market economy in Korea, as the ‘Big Deals’ got under way critics accused him of violating market principles and employing tactics of intervention and coercion used by previous authoritarian regimes. The ‘Big Deals’ experience suggests a further stage in the evolution of the Korean developmental state; the dismantling of state powers and the implementation of neoliberal reforms in the 1990s had led to the emergence of a ‘transformative state’ in which the state acted as ‘senior partner’ rather than ‘commander-in-chief’. The transitional state charged with the task of rebuilding the economy after 1997 regained some of its lost powers and used some familiar methods of achieving its ends. However, it also demonstrated by the nature and scope of its interventions that it was gradually evolving and adapting to meet the changing economic environment. Although Kim's actions prompted allegations from the chaebol and their conservative allies of a return to autocratic economic management by the government, it was clear that the developmental state had not been resurrected. Rather, these criticisms serve to highlight the continuing antagonism in the state–business relationship; neither side had developed new strategies for dealing with each other and their relations were still characterized by mutual mistrust and staunch chaebol resistance to key reforms demanded by the government. Although suspicions of a permanent return to extensive state intervention were unfounded, they nevertheless diminished the prospects for the creation of a cooperative relationship between the state and big business that would be a crucial factor in revitalizing the Korean economy.

Business-Government Relations Within a Contingency Theory Framework: Strategy, Structure, Fit, and Performance

Using a contingency theory framework, this study examines the relationship between a firm’s business-government relations (BGR) strategy, BGR structure, and BGR performance. Based on previous work, the study hypothesizes that BGR strategy determines, in part, the structure of the public affairs function, as well as the function’s effectiveness. Furthermore, the study contends that an appropriate fit between BGR strategy and BGR structure leads to improved BGR performance. Results indicate that there is a positive association between BGR strategies (buffering and bridging) and BGR performance. There is also a positive association between BGR strategy and BGR formalization (structure). However, the study finds no direct association between BGR structure and performance. Further analysis reveals that it is a fit between a firm’s BGR strategy and BGR structure that leads to improved BGR performance. The associations between strategy, structure, fit, and performance offer empirical support for the relevance of the contingency theory framework to BGR research.

Micropolitics and Canadian Business: Paper, Steel and the Airlines

Micropolitics and Canadian Business: Paper, Steel and the Airlines, Peter Clancy, Peterborough: Broadview, 2004, pp. 336.Given the scarcity of work on business-government relations in Canada any new academic monograph in this field is certainly welcome. Yet, even if the field were crowded, Peter Clancy's wide-ranging and multi-layered study would be a useful addition to the literature. As the subtitle indicates, the book is essentially a study of three important Canadian industries chosen from different economic sectors. For each of these it examines the character of industry politics across a variety of dimensions with a substantial emphasis on internal structure and historical development. It deals both with business-government interaction in the process of policymaking and with the nature of industrial policy outputs in a way that is sensitive to the complex and heterogeneous forces operating within each industry.

From “Ward of the State” to “Revolutionary Without a Movement”: The Political Development of William C. Norris and Control Data Corporation, 1957–1986

This article traces the political development of the Control Data Corporation (CDC) and its founder and chief executive officer, William C. Norris, from the firm’s formation in 1957 until his departure from its leadership in 1986. Norris was entrepreneurial in his political strategy, taking large risks to pursue what he perceived to be large opportunities in such areas as antitrust, trade policy, and poverty alleviation. Indeed, his perceptions of these opportunities often diverged substantially from those of others in the computer industry and the broader corporate and policy communities. The article links these differences to Norris’s personal circumstances, the business situation of CDC, and the broader political currents of the times. The experiences of Norris and CDC suggest that business historians need a more expansive and flexible conception of the political attitudes and behavior of business leaders and of the business-government relationship in the United States.

From “Ward of the State” to “Revolutionary Without a Movement”: The Political Development of William C. Norris and Control Data Corporation, 1957–1986

This article traces the political development of the Control Data Corporation (CDC) and its founder and chief executive officer, William C. Norris, from the firm’s formation in 1957 until his departure from its leadership in 1986. Norris was entrepreneurial in his political strategy, taking large risks to pursue what he perceived to be large opportunities in such areas as antitrust, trade policy, and poverty alleviation. Indeed, his perceptions of these opportunities often diverged substantially from those of others in the computer industry and the broader corporate and policy communities. The article links these differences to Norris’s personal circumstances, the business situation of CDC, and the broader political currents of the times. The experiences of Norris and CDC suggest that business historians need a more expansive and flexible conception of the political attitudes and behavior of business leaders and of the business-government relationship in the United States.