Motivations capability handicaps, and firm responses in the early phase of internationalization: a study in the Indian pharmaceutical industry

Abstract

This article identifies and analyzes the experiences of Indian pharmaceutical firms in the early phase of internationalization. It discusses the motivations, forays into international markets, products selection, and capability handicaps and responses and it distinguishes between the experiences of early internationalizers and those of later internationalizers. The early internationalizers face several discontinuities vis-à-vis the experience of meeting the needs of domestic market. They need to cultivate new capabilities by leveraging on whatever is available within the firms and the external environment. The later internationalizers do not experience these handicaps. They benefit from the industry experience and congregate capabilities to move faster.