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Firm and environmental influences on the mode and sequence of foreign research and development activities

✍ Scribed by Joan D. Penner-Hahn

Publisher
John Wiley and Sons
Year
1998
Tongue
English
Weight
101 KB
Volume
19
Category
Article
ISSN
0143-2095

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✦ Synopsis

This paper develops an explanation for the mode and sequence of entry that firms select for their international research and development activities. The hypotheses are based on the internalization and evolutionary theory perspectives. I first hypothesize that there is a sequence to the mode of foreign research and development activities initiated. I then discuss two firm capabilities and alternatives which might cause firms to omit parts of the sequence. The context of the study is the foreign research and development activities of incumbents and recent entrants to the Japanese pharmaceutical industry. The results indicate intriguing differences between the motivations of established firms and new entrants in establishing foreign research and development activities.

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