IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i17p9792-d626308.html
   My bibliography  Save this article

Determinants of Internationalization as Levers for Sustainability: A Study of the Portuguese Pharmaceutical Sector

Author

Listed:
  • Jorge Vieira

    (ISLA Santarém, Largo Cândido Reis, 2000-241 Santarém, Portugal)

  • Rui Frade

    (ISLA Santarém, Largo Cândido Reis, 2000-241 Santarém, Portugal)

  • Raquel Ascenso

    (ISLA Santarém, Largo Cândido Reis, 2000-241 Santarém, Portugal)

  • Filipa Martinho

    (ISLA Santarém, Largo Cândido Reis, 2000-241 Santarém, Portugal)

  • Domingos Martinho

    (ISLA Santarém, Largo Cândido Reis, 2000-241 Santarém, Portugal)

Abstract

The pharmaceutical industry is facing the pressure of a global economy, loss of value in local markets and the highly intense innovation that characterizes this sector. This has a heavy impact, particularly in smaller economies. With this investigation, we intend to identify the determinants of internationalization as levers for sustainability in the pharmaceutical export sector of a small economy. Data was collected from a sample representing 63% of the total universe, Portuguese pharmaceutical organizations with exporting activity. A contextualization of the sector and a bibliographic review were previously carried out, which laid the groundwork for the empirical framework. This study revealed a deeply internationalized sector conditioned by a few shortcomings, namely a certain lack of sustainable competitive advantages, relatively low investment in research and development (R&D), insufficient innovation in internationalization strategies as well as scarce institutional support. Our findings may help pave the way for a more complete understanding of the dynamics of internationalization in highly competitive sectors.

Suggested Citation

  • Jorge Vieira & Rui Frade & Raquel Ascenso & Filipa Martinho & Domingos Martinho, 2021. "Determinants of Internationalization as Levers for Sustainability: A Study of the Portuguese Pharmaceutical Sector," Sustainability, MDPI, vol. 13(17), pages 1-16, August.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:17:p:9792-:d:626308
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/17/9792/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/13/17/9792/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. DiMasi, Joseph A. & Grabowski, Henry G. & Hansen, Ronald W., 2016. "Innovation in the pharmaceutical industry: New estimates of R&D costs," Journal of Health Economics, Elsevier, vol. 47(C), pages 20-33.
    2. S Tamer Cavusgil & Warren J Bilkey & George Tesar, 1979. "A Note on the Export Behavior of Firms: Exporter Profiles," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 10(1), pages 91-104, March.
    3. John Dunning, 2001. "The Eclectic (OLI) Paradigm of International Production: Past, Present and Future," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 8(2), pages 173-190.
    4. Cláudia P. Ribau & António C. Moreira & Mário Raposo, 2015. "Internationalisation of the firm theories: a schematic synthesis," International Journal of Business and Globalisation, Inderscience Enterprises Ltd, vol. 15(4), pages 528-554.
    5. Yasemin Y. Kor & Joseph T. Mahoney & Enno Siemsen & Danchi Tan, 2016. "Penrose's The Theory of the Growth of the Firm: An Exemplar of Engaged Scholarship," Production and Operations Management, Production and Operations Management Society, vol. 25(10), pages 1727-1744, October.
    6. Fumio Teramae & Tomohiro Makino & Yeongjoo Lim & Shintaro Sengoku & Kota Kodama, 2020. "International Strategy for Sustainable Growth in Multinational Pharmaceutical Companies," Sustainability, MDPI, vol. 12(3), pages 1-14, January.
    7. Chittoor, Raveendra & Ray, Sougata, 2007. "Internationalization paths of Indian pharmaceutical firms -- A strategic group analysis," Journal of International Management, Elsevier, vol. 13(3), pages 338-355, September.
    8. Oliveira, João S. & Yazdani, Nahid & Cadogan, John W. & Hodgkinson, Ian R. & Tsougkou, Eleni & Jean, Ruey-Jer “Bryan” & Story, Vicky M. & Boso, Nathaniel, 2018. "The empirical link between export entry mode diversity and export performance: A contingency- and institutional-based examination," Journal of Business Research, Elsevier, vol. 88(C), pages 505-512.
    9. Nihat Kamil Anil & Aviv Shoham & Gregor Pfajfar, 2016. "How export barriers, motives, and advantages impact export performance in developing countries," International Journal of Export Marketing, Inderscience Enterprises Ltd, vol. 1(2), pages 117-141.
    10. Daszkiewicz Nelly & Wach Krzysztof, 2014. "Motives for Going International and Entry Modes of Family Firms in Poland," Journal of Intercultural Management, Sciendo, vol. 6(2), pages 5-18, April.
    11. Fumio Teramae & Tomohiro Makino & Yeongjoo Lim & Shintaro Sengoku & Kota Kodama, 2020. "Impact of Research and Development Strategy on Sustainable Growth in Multinational Pharmaceutical Companies," Sustainability, MDPI, vol. 12(13), pages 1-15, July.
    12. Manuel Portugal Ferreira & Luís Ganhão Simões, 2016. "The interrelationships between resources, capabilities, export competitive advantages and export performance," International Journal of Export Marketing, Inderscience Enterprises Ltd, vol. 1(2), pages 142-165.
    13. Wrona, Thomas & Trąpczyński, Piotr, 2012. "Re-explaining international entry modes – Interaction and moderating effects on entry modes of pharmaceutical companies into transition economies," European Management Journal, Elsevier, vol. 30(4), pages 295-315.
    14. Kahiya, Eldrede T., 2018. "Five decades of research on export barriers: Review and future directions," International Business Review, Elsevier, vol. 27(6), pages 1172-1188.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jorge Vieira & Rui Frade & Filipa Martinho & Domingos Martinho, 2022. "Does Uncertainty Boost Exports? A Study on the Effect of Innovation and Marketing Capabilities in a Small and Innovation-Intensive Sector," Economies, MDPI, vol. 11(1), pages 1-20, December.
    2. Elena Domínguez Romero & Susanne Durst & Antonio Navarro Garcia, 2024. "Rethinking internationalization processes: toward a circular framework," Review of Managerial Science, Springer, vol. 18(11), pages 3363-3394, November.
    3. Concepta McManus & Abilio Afonso Baeta Neves & Alvaro Toubes Prata, 2021. "Scientific publications from non-academic sectors and their impact," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(11), pages 8887-8911, November.
    4. Frances Fabian & Henry Molina & Giuseppe Labianca, 2009. "Understanding Decisions to Internationalize by Small and Medium-sized Firms Located in an Emerging Market," Management International Review, Springer, vol. 49(5), pages 537-563, October.
    5. Mª Ángeles Alcaide & Elena de la Poza & Mª Natividad Guadalajara, 2021. "Predicting the Reputation of Pharmaceutical Firms with Financing and Geographical Location Data," Mathematics, MDPI, vol. 9(16), pages 1-17, August.
    6. Perin, Fernanda & Paranhos, Julia, 2022. "The Internationalisation of the Large Brazilian Pharmaceutical Companies: Challenges, Competitive Advantages and Strategies," CAFE Working Papers 20, Centre for Accountancy, Finance and Economics (CAFE), Birmingham City Business School, Birmingham City University.
    7. Fumio Teramae & Tomohiro Makino & Shintaro Sengoku & Yeongjoo Lim & Takashi Natori & Kota Kodama, 2020. "Research on Pharmaceutical Product Life Cycle Patterns for Sustainable Growth," Sustainability, MDPI, vol. 12(21), pages 1-13, October.
    8. Fumio Teramae & Tomohiro Makino & Yeongjoo Lim & Shintaro Sengoku & Kota Kodama, 2020. "Impact of Research and Development Strategy on Sustainable Growth in Multinational Pharmaceutical Companies," Sustainability, MDPI, vol. 12(13), pages 1-15, July.
    9. Fortanier, Fabienne & Tulder, Rob van, 2008. "Internationalization trajectories - a crosscountry comparison: Are large Chinese and Indian companies different?," MERIT Working Papers 2008-054, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    10. Crick, James M. & Crick, David, 2025. "Don’t stop believing: The manifestations of coopetition in export markets," International Business Review, Elsevier, vol. 34(3).
    11. Agnieszka Żur, 2015. "Opportunity Identification and Creation as Factors of Firm Internationalisation," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 3(2), pages 25-39.
    12. Cristina Chaminade & Monica Plechero, 2015. "Do Regions Make a Difference? Regional Innovation Systems and Global Innovation Networks in the ICT Industry," European Planning Studies, Taylor & Francis Journals, vol. 23(2), pages 215-237, February.
    13. Sosa Andrés, Maximiliano & Nunnenkamp, Peter & Busse, Matthias, 2013. "What drives FDI from non-traditional sources? A comparative analysis of the determinants of bilateral FDI flows," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 7, pages 1-53.
    14. Dosis, Anastasios & Muthoo, Abhinay, 2019. "Experimentation in Dynamic R&D Competition," CRETA Online Discussion Paper Series 52, Centre for Research in Economic Theory and its Applications CRETA.
    15. Branstetter, Lee & Chatterjee, Chirantan & Higgins, Matthew J., 2022. "Generic competition and the incentives for early-stage pharmaceutical innovation," Research Policy, Elsevier, vol. 51(10).
    16. Pomerlyan, Evgeniya & Belitski, Maksim, 2023. "Integration - Growth relationship: A literature review and future research agenda using a TCCM approach," European Management Journal, Elsevier, vol. 41(6), pages 1106-1118.
    17. Assaf, A. George & Josiassen, Alexander & Agbola, Frank W., 2015. "Attracting international hotels: Locational factors that matter most," Tourism Management, Elsevier, vol. 47(C), pages 329-340.
    18. Khanindra Ch. Das, 2013. "Home Country Determinants of Outward FDI from Developing Countries," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 7(1), pages 93-116, February.
    19. Buitrago R., Ricardo E. & Barbosa Camargo, María Inés, 2021. "Institutions, institutional quality, and international competitiveness: Review and examination of future research directions," Journal of Business Research, Elsevier, vol. 128(C), pages 423-435.
    20. Alessia Amighini & Claudio Cozza & Elisa Giuliani & Roberta Rabellotti & Vittoria Scalera, 2015. "Multinational enterprises from emerging economies: what theories suggest, what evidence shows. A literature review," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 42(3), pages 343-370, September.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:13:y:2021:i:17:p:9792-:d:626308. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.