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Business to Government (B2G) – Definition

Cite this article as:"Business to Government (B2G) – Definition," in The Business Professor, updated September 26, 2019, last accessed October 26, 2020, https://thebusinessprofessor.com/lesson/business-to-government-b2g-definition/.


Business to Government (B2G) Definition

Business-to-government or B2G is the business that takes place between the government and private sector companies.

A Little More on What is Business to Government

A small-scale organization offering IT services to a regional government institution would be an example of business to government service. It comprises all types of contracts covering goods, services, and data between all business sizes and all government levels including state, local, and federal.

Governments usually deal with private sector firms by sending requests for proposal or RFPs. Businesses that deal with other firms, or have direct dealing with customers may come across lots of problems while dealing with the government. As compared to private firms, government agencies may take a lot of time for approving and get started with a specific task or project. This can be partially due to no-profit motive and governmental framework.

For instance, the government needs to allocate a specific percentage of the federal budget for small-sized firms. This is something that can offer advantages to a specific constituency, but can affect the efficiency of the process on a huge scale. The small-scale firms should follow a proper registration process, and be able to prove that they can be operated and owned independently, and their activities contribute to the economy of the United States.

Though there is too much paperwork, time, and resources involved in the government-based contracts, it can be beneficial for businesses to offer goods and services to the government sector. It is so because of the huge size and more consistency offered in public contracts than private ones.

Reference for “Business To Government – B2G”


https://www.investopedia.com › Insights › Politics & Money

https://www.ionos.co.uk › … › Online sales › B2G – Business-to-Government

https://smallbusiness.chron.com › … › Government & Business


Academic research on “Business To Government – B2G”

Antecedents of Suppliers’ Participation in BusinesstoGovernment (B2G) Electronic Auction Markets: Thai B2G E-Auction, Dolpanya, K., Land, L. P. W., & Dick, G. (2008). Antecedents of Suppliers’ Participation in Business-to-Government (B2G) Electronic Auction Markets: Thai B2G E-Auction. GlobDev 2008, 10. Despite business-to-government (B2G) electronic auction (e-auction) markets being a way for suppliers to create opportunities for market expansion and for trading activities, the effort to understand the behaviour of suppliers participating in these markets has been lacking. Low supplier participation has been a major problem in Thai e-auction markets. In this paper, we propose a framework to explain suppliers’ intention to participate, and the level of participation in B2G e-auction markets. We posit that suppliers’ participation depends on organizational motivation, and their capabilities. The conceptual framework draws from the Motivation-Ability Framework, Transaction Cost Theory, Institutional Theory, and Resource-Based Theory. It proposes that three key constructs – efficiency motive, legitimacy motive, and organizational capabilities influence suppliers’ intention to participate as well as their participation level in B2G e-auction markets. The conceptual framework may be useful to better understand the key reasons for suppliers to participate in B2G e-auction markets. We also provide rationale for each of the proposed constructs by drawing on our understanding of the Thai electronic auction market as well as the existing literature.

The New eCustoms Information and Communication Technology Platform Applied as a Business to Government (B2G) Interface. Namdarian, I. (2011). The New eCustoms Information and Communication Technology Platform Applied as a Business to Government (B2G) Interface. In HAICTA (pp. 183-192). Trans-European IT services are provided by DG TAXUD in two main ways: either in a distributed way to allow the exchange of information between national administrations, or in a “hub” and “spoke” way concerning the exchange of information. In parallel, the emergence of the Web and the irresistible push towards eGovernment offers an increasing number of services to the citizen. These services provide the traders with a view of the critical business information which is exchanged between the Commission and the national administrations1 . DG TAXUD also provides IT services to serve its own internal business needs in the area of customs. It is crucially important to understand that, in order to serve its user base, DG TAXUD manages IT services which rely on a set of “trans-European systems” made up of geographically spread, but tightly interoperating and collaborating as a Businessto-Government service.

Role and impact of business to government (B2G) guanxi in bidding of infrastructure projects: A case in China, Zhang, B., Huo, Z., & Zhang, M. (2017). Role and impact of business to government (B2G) guanxi in bidding of infrastructure projects: A case in China. In Proceedings of the 20th International Symposium on Advancement of Construction Management and Real Estate (pp. 309-318). Springer, Singapore. Infrastructure projects in China are dominated by government, its entire bidding and tendering process is subject to administrative control, and B2G (Business to government) guanxi has important implications for bidding and tendering activities. This paper investigated professional staff working in bidding and tendering activities of infrastructure projects through guanxi attitude, guanxi value and its roles. It is revealed that the bidding and tendering activities would be very convenient if having B2G guanxi. What’s more, the bidders could avoid bidding and tendering risks through B2G guanxi. However, the bidders need spend a lot of time, money and energy establishing and maintaining B2G relationship. Establishing B2G guanxi could through family, friend and intermediary three ways, and the bidders would prefer establishing their B2G guanxi among business activities. B2G guanxi has an impact on the bidding and tendering results and the will of bidding and tendering, in each type of infrastructure project bidding and tendering, B2G guanxi is needed. If having B2G guanxi with senior officials, it would further contribute to the successful bidder. Whereas, B2G guanxi violates the principles of fairness and transparency, at last, this paper propose how to foster the competitiveness of construction enterprises and culturing professional ethics to ensure B2G guanxi in a healthy way.

Understanding suppliers’ participation in businesstogovernment (B2G) electronic auction markets in the thai context, Meng, Z., & Gong, J. (2009). Understanding suppliers’ participation in business-to-government (B2G) electronic auction markets in the thai context. This paper investigates online knowledge sharing behaviour in Baidu Knows, a platform sponsored by the largest search engine company Baidu in China. We developed a spider engine to collect data from over 2 million questions posted at Baidu Knows. The data collected allows us to profile registered members, to answer questions such as who are the main driving force of those online communities and their attributes, and who are the free-riders seldom posting and answering questions. We also test several hypotheses in explaining the motivations of knowledge sharing, and the quality of such knowledge sharing. Our results indicate that there is a large proportion of users who seldom answer questions, but always ask questions. Although their behaviour seems selfish at the surface, they are actually the key factors driving the growth of online knowledge sharing communities.

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