Determinants of Willingness to Take Contractual Risks for Pharmaceutical Business in Thailand

Abstract

The role of government intervention in business activities can affect business operations because government interventions are actions and steps that mainly carried out by the government to affect the normal operation of the business. This research study empirically identifies the willingness to take contractual risks from the pharmaceutical firm’s perspective through the impact of the political intervention of effectiveness. Categorically, the given research study investigates the impacts of E-governance, freedom from contractual intervention and business friendliness on willingness to take contractual risks. For this purpose, almost all the data of the study was collected mainly from 385 employees of different pharmaceutical firms in Thailand. For the analysis and calculation of data the given study used KMO, and SEM techniques. The significant findings of the study revealed that the mediating role of business friendliness has a significant impact on the relationship between political effectiveness and willingness to take contractual risks. The findings also suggest that the role of E-governance were significant in improving the relationship between willingness to take contractual risks and political effectiveness. The verdicts of the study will be very beneficial for future studies and also help them to understand the role of politics in business.