How Institutional Change Reconfigures Successful Value Chains : The Case of the Western Pharma Corporations in China
Journal
Thunderbird International Business Review
ISSN
1096-4762
Type
journal article
Date Issued
2013-03
Author(s)
Abstract
Management researchers have traditionally emphasized two main factors in the definition of corporate strategies: internal capabilities and industry competition. However, in less stable, transition economies it is particularly the changing institutional environment that influences strategy definition and performance of multinational corporations (MNCs) as shown by numerous international business (IB) scholars. Yet, how institutions matter remains a largely unresolved question. This article examines how institutions have affected the value chain configuration of Western pharmaceutical firms in China. Our research framework identifies four major strategic shifts along the value chain of Western firms in the pharmaceutical industry: upgrading along the value chain, outsourcing to contract service providers, expansion of geographical scope and diversification of product portfolio. The findings allow concrete managerial implications to be derived for decision makers of Western pharmaceutical firms operating in China.
Language
English
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Wiley
Publisher place
Oxford
Volume
55
Number
02
Start page
153
End page
171
Pages
19
Subject(s)
Division(s)
Eprints ID
216628