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. © 2009 INFORMS.
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