Third-World Copycats to Emerging Multinationals: Institutional Changes and Organizational Transformation in the Indian Pharmaceutical Industry

Raveendra Chittoor (), Sarkar Mb (), Sougata Ray () and Preet S. Aulakh ()
Additional contact information
Raveendra Chittoor: Indian Institute of Management Calcutta, Joka, Kolkata 700104, India
Sarkar Mb: Department of General and Strategic Management, Fox School of Business, Temple University, Philadelphia, Pennsylvania 19122; Grenoble École de Management, 38000 Grenoble, France
Sougata Ray: Indian Institute of Management Calcutta, Joka, Kolkata 700104, India
Preet S. Aulakh: Schulich School of Business, York University, Toronto, Ontario M3J 1P3, Canada

Organization Science, 2009, vol. 20, issue 1, 187-205

Abstract: This article investigates how Indian pharmaceutical firms, facing discontinuous institutional changes in their domestic environment due to economic liberalization and intellectual property reforms, have undertaken organizational transformation. Internationalization of resources and product markets constitutes an important component of organizational transformation for local firms in emerging economies. Using longitudinal data on 206 Indian pharmaceutical firms from 1995--2004, we find that firms' access to international technological and financial resources enables product market internationalization. Furthermore, we theorize and find support for our predictions that the association between international resources and markets is conditioned by time and business group affiliation, and product market internationalization affects financial performance. Several implications thus emerge for theory and practice associated with the sources of competitiveness in emerging economy firms and their transformation into globally competitive multinational firms.

Keywords: emerging multinationals; economic liberalization; business groups; resource internationalization; emerging economies; pharmaceutical industry; globalization (search for similar items in EconPapers)
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (95)

Downloads: (external link)
http://dx.doi.org/10.1287/orsc.1080.0377 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:ororsc:v:20:y:2009:i:1:p:187-205

Access Statistics for this article

More articles in Organization Science from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().