Product Complexity and Strategic Alliance on Drug Approval

Management of the business-government relationship is critical for firm performance in regulated industries. In this paper, we predict a U-shaped between product complexity and time to approval by US Food Drug Administration (FDA). Moreover, argue that association contingent on types strategic alliances (i.e., R&D alliance, Marketing alliance) focal those help FDA pharmaceutical companies achieve harmony. Using approved drugs from 1999 2016 as sample, our hypotheses are supported empirical analysis firms. The findings have important implications achieving harmony firms regulatory agencies.