What is State Dependent Business System

The main purpose of this chapter is to examine the performance implications of corporate political ties (CPT) that the business organizations establish with the government in the long run. Since the relevant literature mostly focuses on the outcome of these relations, they miss the process which creates the outcomes. Hence, there is no consensus over the performance implications of corporate political ties in the relevant literature. In the chapter, the author examines the CPT-performance relation by taking the process into the center of the study which is conducted in a state-dependent national business system. More specifically, the author examines how the Turkish organizations adapt their political ties in the face of changing political environment and what are the performance implications of this adaptation.