Product innovation, product-market competition and persistent profitability in the U.S. pharmaceutical industry

Article Abstract:

Sustained high profitability may be realized when a firm repeatedly introduces innovations that serve previously unmet consumer demands. While the profits may decline over time after each innovation, innovation assures that the firm maintains a high performance position. At the same time, sustained high profitability may also be realized by companies that innovate less frequently, but effectively avoid the competition that may reduce high returns. A model for firm-level profit persistence in the pharmaceutical industry that considers product innovation, product-market competition and the possibility that numerous product innovations may be embodied within a single firm was developed and tested. Results were in agreement with the relationship of innovative frequency and sustained high profitability.

Drugs & Pharmaceuticals, Pharmaceutical and Medicine Manufacturing, Drugs, Economic aspects, Pharmaceutical industry

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Managing DMNCs: a search for a new paradigm

Article Abstract:

Organization theory has contributed to the development of research on the management of diversified multinational corporations (DMNC). Organization theory of DMNCs must consider several factors, including structural undeterminancy, internal differentiation, information intensity, organizational networks, and learning. The application of theories of institutional economics to DMNCs has been derived from transaction cost analysis and principal-agent theory. An organization theory of DMNCs can be obtained by integrating the findings of several researchers. The characteristics of the resulting paradigm include that the substance and process of DMNCs can be obtained from the same underlying framework, the paradigm focuses on mid-range constructs, and organization theory of DMNCs may be culture-bound.

Conglomerate corporations

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Determinants of transnational new product development capability: testing the influence of transferring and deploying tacit overseas knowledge

Article Abstract:

This article examines international competition and knowledge management across organizational and national borders, focusing on the effective transfer of knowledge between multinational corporations and their subsidiaries. Findings suggest that corporations that utilize cross-national teams whose members have prior international experience or communicate regularly with overseas managers increase their capabilities for transnational product development.

Product Development, Statistical Data Included, International aspects, Knowledge management, Business communication

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