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We conduct a theory-guided review of the literatures on public–private partnerships and grand challenges (GCs). We adopt an organization design approach to review and identify constructs in public–private collaborations (PPCs) that address societal challenges. Our review identifies the complexities of organizing to tackle GCs, highlights the plurality of organizational forms in PPCs, and explores organizational design considerations in these partnerships. Given the elevated role of private actors in these collaborations, our review provides a new understanding of how they can shape a private-public interface that is robust to the scale and scope of global problems. This leads to a rich research agenda on when, why, and how public and private collaborations matter, and their implications for addressing societal challenges. [ABSTRACT FROM AUTHOR]

How do firms address complex collective action problems effectively? Institutional and stakeholder research suggests that firms may avoid the tragedy of the commons by aligning the interests of critical proximate stakeholders in ways that governments cannot accomplish. This phenomenological paper investigates this possibility by analyzing Amazon rainforest preservation by Natura, a Brazilian cosmetics company. The results indicate that Natura internalized environmental externalities by linking ecologically conscious consumers with rural Amazonian communities. A differences-in-differences analysis compares forest preservation and fire activity in the municipalities that Natura entered with those in which it did not enter. Natura's impact is identified through an instrumental variable analysis using missing satellite images, which Natura relied upon to decide which municipalities to enter. Quantitative results tie Natura's entry into municipalities with forest preservation. Analysis of three mechanisms associates Natura's involvement with stakeholder decisions to cultivate diverse forest-generated crops instead of clearing the land for conventional agriculture. This study contributes to the management literature by suggesting how firms can address important global challenges, such as rainforest preservation, by investing in stakeholder capability development and by creating institutional arrangements in line with those envisioned elsewhere. This paper was accepted by George Serafeim, Special Section of Management Science on Business and Climate Change. Funding: This work was supported by the Clarkson Centre for Business Ethics [CAD 7,500.00] and Canada's Social Sciences and Humanities Research Council. Supplemental Material: The data files and online appendices are available at https://doi.org/10.1287/mnsc.2023.4884. [ABSTRACT FROM AUTHOR]

Purpose is a concept often used in managerial communities to signal and define a firm's benevolent and pluralistic approach to its stakeholders beyond its focus on shareholders. While some evidence has linked purpose to positive organizational outcomes such as growth, employee satisfaction, innovation, and superior stock market performance, the definition and application of purpose in management research has been varied and frequently ambiguous. We review literature streams that invoke purpose in the for-profit firm and propose a unifying definition. Next, we develop a framework to study purpose that decouples its framing and formalization within firms from its realization, thus helping to avoid conflation of the presence of purpose with positive organizational outcomes. The framework also highlights internal and external drivers that shape the framing of purpose as well as the influence of the institutional context on its adoption and effectiveness. Finally, we provide a rich agenda for future research on purpose. [ABSTRACT FROM AUTHOR]

Open innovation includes external knowledge sources and paths to market as complements to internal innovation processes. Open innovation has to date been driven largely by business objectives, but the imperative of social challenges has turned attention to the broader set of goals to which open innovation is relevant. This introduction discusses how open innovation can be deployed to address societal challenges—as well as the trade-offs and tensions that arise as a result. Against this background we introduce the articles published in this Special Section, which were originally presented at the sixth Annual World Open Innovation Conference. [ABSTRACT FROM AUTHOR]

Governance gives life to an organization by establishing the rules that shape organizational action. Structures of governance rest on stakeholder engagement, particularly on how stakeholders assess the prospects for earning a return by committing their specialized resources to the organization. Once formalized, governance structures and processes can resist change. Yet, under special circumstances, some stakeholders that are a party to an organization may seek to adapt governance in response to changes in the external environment that surrounds the organization. Adaptation often requires renegotiation: who has claims on the organization and who gets what? In this article we analyze the relationship between the institutional change that drives adaptation and the outcome of renegotiation. We draw on institutional economics and organization theory to identify four pathways of governance adaptation: continuity, architectural change, enfranchisement change, and redistribution. We call for further theoretical and empirical research on governance adaptation and its implications for organizational value creation and capture. [ABSTRACT FROM AUTHOR]

The article presents a speech by president of Academy of Management Anita M. McGahan in Atlanta 2017 as presidential address on freedom in scholarship. Topics included Atlanta’s successes and problems, relationship between prosperity and freedom, and climate change.

The four trajectories of change are intermediating change, radical change, creative change, and progressive change. The traits of each are described, and suggestions for appropriate and successful corporate navigation of each are offered.

Evidence is provided on a broad cross-section of publicly traded companies to discuss the turnaround as business phenomenon. Several exceptional businesses that remained independent, survived and accomplished turnarounds during the 1980s and 1990s are also identified.

The Merck and Company $6.6 billion acquisition of Medco Containment Services, a prescription-benefits-management company (PBM), has inspired similar acquisitions of PBMs by other pharmaceutical companies. The pharmaceutical companies claim that such acquisitions provide invaluable drug-research information from PBM customers, but others are critical of the fact that PBMs may be put in the position of offering incentives to doctors who use products produced by their parent companies.

Abstract Biopharmaceutical innovation has had a profound health and economic impact globally. Developed countries have traditionally been the source of most innovations as well as the destination for the resulting economic and health benefits. As a result, most prior research on this sector has focused on developed countries. This paper seeks to fill the gap in research on emerging markets by analyzing factors that influence innovative activity in the indigenous biopharmaceutical sectors of China, India, Brazil, and South Africa. Using qualitative research methodologies, this paper a) shows how biopharmaceutical innovation is taking place within the entrepreneurial sectors of these emerging markets, b) identifies common challenges that indigenous entrepreneurs face, c) highlights the key role played by the state, and d) reveals that the transition to innovation by companies in the emerging markets is characterized by increased global integration. It suggests that biopharmaceutical innovators in emerging markets are capitalizing on opportunities to participate in the drug development value chain and thus developing capabilities and relationships for competing globally both with and against established companies headquartered in developed countries.

Abstract Background The poor in low and middle income countries have limited access to health services due to limited purchasing power, residence in underserved areas, and inadequate health literacy. This produces significant gaps in health care delivery among a population that has a disproportionately large burden of disease. They frequently use the private health sector, due to perceived or actual gaps in public services. A subset of private health organizations, some called social enterprises, have developed novel approaches to increase the availability, affordability and quality of health care services to the poor through innovative health service delivery models. This study aims to characterize these models and identify areas of innovation that have led to effective provision of care for the poor. Methods An environmental scan of peer-reviewed and grey literature was conducted to select exemplars of innovation. A case series of organizations was then purposively sampled to maximize variation. These cases were examined using content analysis and constant comparison to characterize their strategies, focusing on business processes. Results After an initial sample of 46 studies, 10 case studies of exemplars were developed spanning different geography, disease areas and health service delivery models. These ten organizations had innovations in their marketing, financing, and operating strategies. These included approaches such a social marketing, cross-subsidy, high-volume, low cost models, and process reengineering. They tended to have a narrow clinical focus, which facilitates standardizing processes of care, and experimentation with novel delivery models. Despite being well-known, information on the social impact of these organizations was variable, with more data on availability and affordability and less on quality of care. Conclusions These private sector organizations demonstrate a range of innovations in health service delivery that have the potential to better serve the poor's health needs and be replicated. There is a growing interest in investing in social enterprises, like the ones profiled here. However, more rigorous evaluations are needed to investigate the impact and quality of the health services provided and determine the effectiveness of particular strategies.