In a fast-developing and uncertain world, grand challenges emerge as a collection of programs encouraging creativity to address significant worldwide development and health issues. It is essential that grand challenges are debated at various levels comprising spheres of policymaking, publicity, and academics worldwide. Depending on the urgency of a challenge, the opinion and prioritisation of stakeholders may vary. Nevertheless, stakeholders demand collective business actions to handle these grand challenges jointly. A synergistic approach to business strategy draws the attention of scientific researchers and practitioners in the way that it could combine many crucial factors to create a dynamic in business. By applying a critical and integrative literature review, this paper aims to conceptualise the creation of competitive advantages and innovative dynamics from the perspective of business diplomacy. The consonance from business diplomacy, which is about stakeholders’ engagement and negotiation, and shared values creation will ensure the operation of a company. This is a synergistic approach as business diplomacy and shared value creation are capturing the significant profit of synergy. This research will analyse the interconnection between business diplomacy and shared value creation based on synergy.