Changing partnerships: Firms and the French state

Lindblom's hypothesis that in market‐oriented systems businessmen predominate over statesmen is tested in relation to the way French firms have switched partners since the 1980s. Instead of a dirigiste—style special relationship with government, they have formed multinational partnerships. The implications of the new competitive context, under the pressure of delocalisation panic, are considered, prior to the examination of the effects of nationalisation and privatisation on the national identity of firms. The virtual bankruptcy of Credit Lyonnais is examined as an example of state‐dependent capitalism, and the impact of EC competition policy is considered. The partial industrial disengagement by the French government in favour of market competition reinforces the applicability of Lindblom's hypothesis to the relations between firms and state in France.