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How Institutional Change Reconfigures Successful Value Chains : The Case of the Western Pharma Corporations in China

Alexander Dierks, Christian Kuklinski & Roger Moser

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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.
   
type journal paper
   
keywords
   
language English
kind of paper journal article
date of appearance 3-2013
journal Thunderbird International Business Review
publisher Wiley (Oxford)
ISSN 1096-4762
DOI 10.1002/tie.21533
volume of journal 55
number of issue 02
page(s) 153-171
review double-blind review
   
citation Dierks, A., Kuklinski, C., & Moser, R. (2013). How Institutional Change Reconfigures Successful Value Chains: The Case of the Western Pharma Corporations in China. Thunderbird International Business Review, 55(02), 153-171, DOI:10.1002/tie.21533.