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Innovation and misconduct in the pharmaceutical industry

Denis G. Arnold, Louis H. Amato, Jennifer L. Troyer and Oscar Jerome Stewart

Journal of Business Research, 2022, vol. 144, issue C, 1052-1063

Abstract: The relationships between innovation and firm misconduct have received little attention. We contribute to advancing understanding of misconduct in several ways. First, we find support for previous research on firm misconduct that finds that strain can contribute to unethical firm behavior. Theoretically, our contribution provides evidence in support of the novel idea that strain that results from innovation deficits promotes misconduct. We also contribute to the growing literature on ethical organizational cultures by providing evidence linking weak ethical cultures in the pharmaceutical industry with increased harm to patients. A large body of non-quantitative literature argues that many pharmaceutical firms engage in misconduct in order to promote sales and overcome innovation deficits. We find support for the conclusion that misconduct constitutes a substitute for all measurable categories of drug innovation.

Keywords: Misconduct; Innovation; Strain; Ethical culture; Behavioral theory of the firm (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:144:y:2022:i:c:p:1052-1063

DOI: 10.1016/j.jbusres.2022.02.026

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