Abstract
This study addresses how multinational corporations (MNCs) interact
with government by examining the strategic management of government
affairs in 25 MNCs in China from the perspectives of public relations
and corporate political activity. Twenty-seven qualitative interviews
were conducted. Results show that 16 of the 25 MNC include their
government affairs managers in strategic management. Government affairs
contributes to the process by aligning their business goals with
the development of policies and regulations. Government affairs managers
play 4 roles in the process according to the level of regulation
and the frequency of external environmental changes of the MNCs:
the business developer, expert prescriber, senior advisor, and internal
consultant. Government affairs specialists use direct and indirect
sources to gather information relevant to environmental scanning.
Results also suggest a positive relationship between the participation
of government affairs in strategic management and excellence in government
affairs. However, in addition to excellence in government affairs,
organizational mechanisms of management, organizational expectation
and culture, and the nature of the MNC's industry also affect the
integration of government affairs with the overall strategic management.
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