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Economic success and sustainability in pharmaceutical sector: a case of Indian SMEs

Author

Listed:
  • José Niño-Amézquita

    (Regional Center for Productivity and Innovation of Boyaca, Colombia)

  • Fedor Legotin

    (Ural State University of Economics, Russian Federation)

  • Oleg Barbakov

    (Tyumen Industrial University, Russian Federation)

Abstract

Our paper examines one of the key aspects of the organizational economics – the factors of economic success and sustainability of the pharmaceutical small and medium enterprises (SMEs) in India. Indian pharmaceutical industry is known for its high fragmentation and weak generic based R&D initiatives. The study uses inflation adjusted cross section data for 20 SMEs in the year 2013-2014 and applies OLS regression model with robust standard errors. It has found that exports, R&D expenditure, and previous year profits have exercised positive impact on SMEs’ growth. The negative, yet statistically significant influence of advertising and marketing expenditure highlights the need to rethink about strategic management policies of SMEs. Our results suggest that SMEs are required to pay more attention towards the global market expansion and value creation through R&D investment, as a part of their long-term growth and survival strategy.

Suggested Citation

  • José Niño-Amézquita & Fedor Legotin & Oleg Barbakov, 2017. "Economic success and sustainability in pharmaceutical sector: a case of Indian SMEs," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 5(1), pages 157-168, September.
    • Handle: RePEc:ssi:jouesi:v:5:y:2017:i:1:p:157-168
    DOI: 10.9770/jesi.2017.5.1(13)
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    References listed on IDEAS

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    Citations

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    Cited by:

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    2. György Kovács & Béla Illés, 2019. "Development of an Optimization Method and Software for Optimizing Global Supply Chains for Increased Efficiency, Competitiveness, and Sustainability," Sustainability, MDPI, vol. 11(6), pages 1-28, March.
    3. Chih-Hung Hsu & Ming-Ge Li & Ting-Yi Zhang & An-Yuan Chang & Shu-Zhen Shangguan & Wan-Ling Liu, 2022. "Deploying Big Data Enablers to Strengthen Supply Chain Resilience to Mitigate Sustainable Risks Based on Integrated HOQ-MCDM Framework," Mathematics, MDPI, vol. 10(8), pages 1-35, April.
    4. Sebastian Kot, 2018. "Sustainable Supply Chain Management in Small and Medium Enterprises," Sustainability, MDPI, vol. 10(4), pages 1-19, April.
    5. Kharchenko Maryna & Pashkevych Maryna & Shishkova Nataliia, 2018. "Oval-sustainability in Entrepreneurship," Open Economics, De Gruyter, vol. 1(1), pages 142-153, December.

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    More about this item

    Keywords

    economic success; sustainability; pharmaceutical industry; economic growth; R&D;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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