This paper investigates business diplomacy from the perspective of senior managers and diplomats. In one of the earliest empirical studies, twenty-one official diplomats, CEOs, and business people were interviewed about their perspectives on business diplomacy and its core elements. Data were analyzed using grounded theory. The findings indicate that business diplomacy is a set of multiple integrated qualities concerned with professionally and systematically managing and influencing multiple stakeholders to advance business interests. The findings have led to developing an integrative theory and framework that expands our understanding of business diplomacy. The framework demonstrates the practicability and applicability of business diplomacy in management and business. The study’s implications suggest that businesses incorporate business diplomacy as a strategic tool at the managerial and organizational levels.
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