SPEND IT WISELY: MARKET AND NON-MARKET STRATEGIES IN THE DEVELOPMENT OF NEW DRUGS

Vareska VAN DE VRANDE; Annapoornima M. Subramanian; Moren Lévesque; Patricia Klopf

doi:10.5465/amproc.2023.133bp

SPEND IT WISELY: MARKET AND NON-MARKET STRATEGIES IN THE DEVELOPMENT OF NEW DRUGS

Vareska VAN DE VRANDE, Annapoornima M. Subramanian, Moren Lévesque, Patricia Klopf

Department of Strategic Management and Entrepreneurship

Research output: Contribution to journal › Conference article › Popular

Abstract

Pharmaceutical firms are top lobbying spenders in the United States (US). While the potential strategic benefits of lobbying are recognized in the literature, the criticism against unethical aspects of lobbying warrants pharmaceutical firms to strategize their lobbying activities. Our study addresses the question “How do market and non-market strategies interact in the context of new drug launches?” Specifically, we investigate the interaction between lobbying and the intellectual capital (human, structural, and social capital) of firms. We use a formal model to develop our hypotheses, which we test on a sample of the largest US-listed pharmaceutical firms between 1999 and 2021. Our analysis suggests a substitutive relationship between a firm’s human and structural capital and lobbying and complementary relationship between a firm’s social capital and lobbying.

Original language	English
Journal	Academy of Management Annual Meeting Proceedings
Volume	2023
Issue number	1
DOIs	https://doi.org/10.5465/amproc.2023.133bp
Publication status	Published - 24 Jul 2023
Event	83rd Annual Meeting of the Academy of Management, AOM 2023 - Boston, United States Duration: 4 Aug 2023 → 8 Aug 2023

Bibliographical note

Publisher Copyright:
© 2023, Academy of Management. All rights reserved.

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Cite this

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title = "SPEND IT WISELY: MARKET AND NON-MARKET STRATEGIES IN THE DEVELOPMENT OF NEW DRUGS",

abstract = "Pharmaceutical firms are top lobbying spenders in the United States (US). While the potential strategic benefits of lobbying are recognized in the literature, the criticism against unethical aspects of lobbying warrants pharmaceutical firms to strategize their lobbying activities. Our study addresses the question “How do market and non-market strategies interact in the context of new drug launches?” Specifically, we investigate the interaction between lobbying and the intellectual capital (human, structural, and social capital) of firms. We use a formal model to develop our hypotheses, which we test on a sample of the largest US-listed pharmaceutical firms between 1999 and 2021. Our analysis suggests a substitutive relationship between a firm{\textquoteright}s human and structural capital and lobbying and complementary relationship between a firm{\textquoteright}s social capital and lobbying.",

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SPEND IT WISELY: MARKET AND NON-MARKET STRATEGIES IN THE DEVELOPMENT OF NEW DRUGS

Abstract

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