A Study of the Indian Pharmaceutical Industry in the New Patent Regime
Untangling Sources of Competitive Advantage in Unpredictable Environments
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The introduction of product patent regime in 2005 has forced the firms in the Indian Pharmaceutical Industry (IPI) to rethink their sources of competitive advantage. The absence of an appropriate funding mechanism through the Indian government and the acquisition of Indian pharmaceutical firms by MNCs have added to the woes. This research mainly examines how firms in the IPI would generate competitive advantage and superior performance in such a scenario. Using multi-method study (survey and case study research), this study investigates; 1. The role and extent of key capabilities namely market...
The introduction of product patent regime in 2005 has forced the firms in the Indian Pharmaceutical Industry (IPI) to rethink their sources of competitive advantage. The absence of an appropriate funding mechanism through the Indian government and the acquisition of Indian pharmaceutical firms by MNCs have added to the woes. This research mainly examines how firms in the IPI would generate competitive advantage and superior performance in such a scenario. Using multi-method study (survey and case study research), this study investigates; 1. The role and extent of key capabilities namely marketing, manufacturing, human resource and R&D capabilities in generating competitive advantage and superior performance, 2. The role and extent of strategic leadership in managing key capabilities, 3. The role and extent of government support on the strategic competitiveness, and 4. The strategic options and emergent strategies of firms in the IPI. On the whole, this research study may be useful to managers and policy makers by arguing that building capabilities in key areas through effective strategic leadership to meet market challenges in a more viable strategy in the new patent regime.
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