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Mutual scrutiny and information exchange: Uncovering R&D Partners’ impact on ESG performance in the biopharmaceutical industry

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  • Hu, Yahan
  • Zheng, Qinqin

Abstract

Advocacy for environmental, social, and governance (ESG) performance is shaping the biopharmaceutical industry. Nevertheless, the impact of certain stakeholder groups within the industry, such as research and development (R&D) partners, remains largely underexplored. As risk and resources are two key dimensions in understanding R&D alliance activities, we propose that R&D partners may influence focal firms’ ESG performance through two forces: mutual scrutiny driven by risk considerations and information exchange reflecting resource access. Our investigation of strategic R&D alliances in the global biopharmaceutical industry from 2001 to 2020 supports the proposed enhancement effect of R&D partnerships on ESG performance. Moreover, this effect is stronger when focal firms perceive R&D partners as a more salient stakeholder group. Our study contributes to ESG research by integrating stakeholder theory with the strategic alliance literature and emphasising the non-financial effects of interorganisational relationships.

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  • Hu, Yahan & Zheng, Qinqin, 2025. "Mutual scrutiny and information exchange: Uncovering R&D Partners’ impact on ESG performance in the biopharmaceutical industry," Journal of Business Research, Elsevier, vol. 195(C).
    • Handle: RePEc:eee:jbrese:v:195:y:2025:i:c:s0148296325002310
    DOI: 10.1016/j.jbusres.2025.115408
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