Business Group Effects on the Innovation-Internationalization Relationship: Evidence from the Indian Pharmaceutical Sector

Saptarshi Purkayastha; Tatiana S. Manolova; Linda Edelman

Business Group Effects on the Innovation-Internationalization Relationship: Evidence from the Indian Pharmaceutical Sector

Saptarshi Purkayastha, Tatiana S. Manolova, Linda Edelman

Management

Research output: Chapter in Book/Report/Conference proceeding › Chapter

Abstract

We combine insights from the strategic management and international business literatures in order to explore the moderating role of business groupcharacteristics 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.

Original language	English
Title of host publication	Advances in International Management, Vol. 28: Emerging Economies and Multinational Enterprises
Publisher	Emerald Group Publishing, Ltd.
Pages	379-402
State	Published - 2015

Cite this

@inbook{a2772fa640f54f138df2134acda30635,

title = "Business Group Effects on the Innovation-Internationalization Relationship: Evidence from the Indian Pharmaceutical Sector",

abstract = "We combine insights from the strategic management and international business literatures in order to explore the moderating role of business groupcharacteristics 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.",

author = "Saptarshi Purkayastha and Manolova, \{Tatiana S.\} and Linda Edelman",

note = "Publisher Copyright: {\textcopyright} 2015 by Emerald Group Publishing Limited???.",

year = "2015",

language = "English",

pages = "379--402",

booktitle = "Advances in International Management, Vol. 28: Emerging Economies and Multinational Enterprises",

publisher = "Emerald Group Publishing, Ltd.",

}

Business Group Effects on the Innovation-Internationalization Relationship: Evidence from the Indian Pharmaceutical Sector. / Purkayastha, Saptarshi; Manolova, Tatiana S.; Edelman, Linda.
Advances in International Management, Vol. 28: Emerging Economies and Multinational Enterprises. Emerald Group Publishing, Ltd., 2015. p. 379-402.

Research output: Chapter in Book/Report/Conference proceeding › Chapter

TY - CHAP

T1 - Business Group Effects on the Innovation-Internationalization Relationship: Evidence from the Indian Pharmaceutical Sector

AU - Purkayastha, Saptarshi

AU - Manolova, Tatiana S.

AU - Edelman, Linda

PY - 2015

Y1 - 2015

N2 - We combine insights from the strategic management and international business literatures in order to explore the moderating role of business groupcharacteristics 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.

AB - We combine insights from the strategic management and international business literatures in order to explore the moderating role of business groupcharacteristics 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.

M3 - Chapter

SP - 379

EP - 402

BT - Advances in International Management, Vol. 28: Emerging Economies and Multinational Enterprises

PB - Emerald Group Publishing, Ltd.

ER -

Business Group Effects on the Innovation-Internationalization Relationship: Evidence from the Indian Pharmaceutical Sector

Abstract

Fingerprint

Cite this