Driving Profit Through Impact? The Role of the European Pharmaceutical Industry in Cross-Sectoral Partnerships for Global Health

Abstract

The significance of cross-sectoral partnerships (CSPs) in addressing global health challenges has been increasingly recognized, particularly highlighted by the pharmaceutical industry's response during the COVID-19 pandemic. However, this involvement has also underscored profound disparities between the global North and South, exacerbated by a lack of research on partnerships that target health barriers in vulnerable communities. This paper explores the concept of shared value creation (SVC) in leading European pharmaceutical companies as a strategy to integrate social and business objectives within CSPs. It critically examines SVC by applying Austin and Seitanidi's (2012) value co-creation framework and uses a qualitative case study methodology, employing semi-structured interviews. The findings underscore that trust and legitimacy are essential for the success of CSPs, yet partnerships that focus on SVC frequently face challenges in establishing trust. This introduces a paradox where philanthropic efforts, while building trust and access, do not sustain the same level of impact as SVC-oriented partnerships. Moreover, the study identifies external barriers as significant constraints on the potential of CSPs in low- and lower-middle-income countries (LMICs). Consequently, this paper advocates for a balanced approach that balances philanthropic and profit- driven motives and calls for an expansion of the value co-creation framework to better accommodate the varied institutional contexts in which CSPs operate.