Contingency theory & business-government relations: Strategy, structure, and performance in MNCS

This paper supports the investigation of business-government relations (BGR) within a traditional contingency theory/strategic management framework. A general framework is outlined and a part of the framework is empirically tested. Results indicate that that formalization of BGR activities tends to benefit firms that emphasize a buffering strategy more than firms emphasizing a bridging strategy. Results also indicate that both approaches (buffering and/or bridging) can result in improved BGR performance. However, no direct association was found between internationalization and BGR formalization or between BGR formalization and BGR performance. The associations between strategy, structure, and performance offer empirical support for the relevance of the described. contingency theon, framework.