Business diplomacy strategies and instruments: Biotechnology companies promoting GMOs in Mexico

Abstract

Business diplomacy emphasizes engagement with stakeholders to shape the environment to favour business interests. This article recognizes that multinational corporations (MNCs) play a relevant role in the international arena, dealing with governments and other non-state actors by means of business diplomacy. Biotechnology companies, in particular, bargain with government representatives for commercialization, deregulation or intellectual property enforcement. In order to advance their economic and business goals, biotechnology companies have implemented reactive, proactive and relationship-building strategies and instruments. These MNCs have applied reactive instruments to respond to evolving problems and proactive instruments to address more complex issues. MNCs have also employed long-term relationship-building instruments, such as awards and research centres, to establish stronger relationships with multiple stakeholders. This article contributes to the discussion of what business diplomacy is and presents an analysis of strategies and instruments that is scarce in the business diplomacy literature.