Government–Business Partnership Formation for Environmental Improvements

Abstract

This article extends resource dependence theory to systematically explain what types of firms are likely to partner with governments through government–business partnerships (GBPs) to address environmental challenges. Using data from 377 environmental alliances formed between 1985 and 2013, this article empirically assesses firms’ likelihood of choosing GBPs for environmental improvements rather than selection of other cross-sector and interfirm partnership(s). The results suggest that GBPs are likely to form when firms are in vulnerable strategic positions, for example, where their survival substantively relies on receiving government support. GBPs are also likely to form when firms have strong resource or social positions that allow them to leverage governmental power in the development of strategic opportunities related to environmental improvements.