Economic success and sustainability in pharmaceutical sector: a case of Indian SMEs

José Niño-Amézquita (), Fedor Legotin () and Oleg Barbakov ()
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José Niño-Amézquita: Regional Center for Productivity and Innovation of Boyaca, Colombia
Fedor Legotin: Ural State University of Economics, Russian Federation
Oleg Barbakov: Tyumen Industrial University, Russian Federation

Entrepreneurship and Sustainability Issues, 2017, vol. 5, issue 1, 157-168

Abstract: Our paper examines one of the key aspects of the organizational economics – the factors of economic success and sustainability of the pharmaceutical small and medium enterprises (SMEs) in India. Indian pharmaceutical industry is known for its high fragmentation and weak generic based R&D initiatives. The study uses inflation adjusted cross section data for 20 SMEs in the year 2013-2014 and applies OLS regression model with robust standard errors. It has found that exports, R&D expenditure, and previous year profits have exercised positive impact on SMEs’ growth. The negative, yet statistically significant influence of advertising and marketing expenditure highlights the need to rethink about strategic management policies of SMEs. Our results suggest that SMEs are required to pay more attention towards the global market expansion and value creation through R&D investment, as a part of their long-term growth and survival strategy.

Keywords: economic success; sustainability; pharmaceutical industry; economic growth; R&D (search for similar items in EconPapers)
JEL-codes: D21 D23 L20 O40 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:ssi:jouesi:v:5:y:2017:i:1:p:157-168

DOI: 10.9770/jesi.2017.5.1(13)

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