Business Group Effects on the Innovation-Internationalization Relationship: Evidence from the Indian Pharmaceutical Sector
Emerging Economies and Multinational Enterprises
ISBN: 978-1-78441-740-6, eISBN: 978-1-78441-739-0
Publication date: 24 June 2015
Abstract
We combine insights from the strategic management and international business literatures in order to explore the moderating role of business group characteristics on the link between innovation and internationalization in the context of the pharmaceutical sector in India. We test our three hypotheses on a sample of 219 Indian pharmaceutical firms affiliated with business groups, over a five-year period (2005–2010) in a panel of 1,096 firm-year observations. Results indicate that, contrary to our contention, research expenditure is negatively associated with export intensity, implying that firms in the Indian pharmaceutical sector may face a trade-off between investing in innovation and international expansion. As expected, business group characteristics significantly impact the strength of the relationship between innovation and internationalization. Theoretical and practitioner implications are discussed.
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Acknowledgements
Acknowledgments
A previous version of the paper was presented at the 2013 Strategic Management Society Special Conference on Strategic Leadership: An Emerging Market Perspective, Mohali, India. The authors would like to thank Elitsa Banalieva and Laszlo Tihanyi for their thoughtful comments and recommendations on how to improve the manuscript. All errors and omissions remain our own.
Citation
Purkayastha, S., Manolova, T.S. and Edelman, L.F. (2015), "Business Group Effects on the Innovation-Internationalization Relationship: Evidence from the Indian Pharmaceutical Sector", Emerging Economies and Multinational Enterprises (Advances in International Management, Vol. 28), Emerald Group Publishing Limited, Leeds, pp. 379-402. https://doi.org/10.1108/S1571-502720150000028017
Publisher
:Emerald Group Publishing Limited
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