Business-government relationships in the pharmaceutical industry: an analysis of a multinational corporation in Colombia and India

Abstract

Business government relationships are critical within the pharmaceutical industry while the growth in emerging markets leads to those being the most important revenue drivers. By conducting a case study about the multinational pharmaceutical corporation Novartis and its business operations in two emerging markets, Colombia and India, this paper examines the impact of Novartis on the outcomes of the two cases, based on the stakeholder theory, institutional theory and government-business bargaining principles, in the context of business-government relationships. It concludes with implications for business-government relationships, the importance of negotiations and proactive stakeholder management and lastly provides some guidance to Novartis