Analaysing the Components of High-tech Businesses on the Speed of Internationalization (Case Study: Pharmaceutical Industry)

Document Type : Research Paper

Authors

1 Department of Business Management and Entrepreneurship, Central Tehran Branch, Islamic, Azad University, Tehran, Iran.

2 Department of Business Management, Central Tehran Branch, Islamic Azad University Tehran, Iran.

3 Department of Corporate Entrepreneurship, Faculty of Entrepreneurship, University of Tehran, Tehran, Iran

4 Department of Industrial Management, Central Tehran Branch, Islamic Azad University Tehran, Iran.

Abstract

Objective: Today, technological businesses tend to be present in international markets and improve their speed by adopting a competitive advantage. The speed of internationalization is an important issue for managers who want to enter or develop international markets. From a managerial point of view, companies should determine the speed of internationalization development because speed is a key aspect of the company's internationalization strategies and should balance the company's resources and international opportunities due to the short life cycle of products. Pharmaceutically, the speed of entering international markets in order to gain more market share is an important management challenge in the decision-making process to enter foreign markets. The purpose of this study is to measure the impact of the contextual components of high-tech businesses on the speed of internationalization.
Method: The current research is explanatory in nature; In terms of practical aim and in terms of gathering descriptive-correlational information, it is a case study. The selecton criteria of pharmaceutical companies are a) having exports in the last 10 years and b) having pharmaceutical innovations at the international level, the total number of the statistical population of 424 pharmaceutical companies was determined. The unit of research in the quantitative method is the person, that is, the managers of the pharmaceutical companies, according to Morgan's table, 201 people were selected using random-systematic sampling, and 149 questionnaires were applied for quantitative data analysis.
SPSS version 22 software was used to determine the distribution of research data. In the following, to analyze the measurement of indicators and test the hypotheses of structural equations, PLS software with version 3 was used.
The results in the quantitative section show that the coefficient of determination (R2) of 0.723, 0.626, 0.877 independent variables determine the dependent variables. The following variables determine the dependent variable with the following values:Propulsion 0.852, Competiion Environment 0.481,Target market fit 0.639,production actions 0.521. Therefore, the speed of internationalization is significant with a confidence level of 0.95. In other words, the T value of each variable is more than 1.96.
The results in the quantitative section show that the coefficient of determination (R2) of the independent variables is 0.723, 0.626, and 0.877 of the dependent variables. Therefore, the speed of internationalization is significant with a confidence level of 0.95. In this research, the Q2 criterion for the competitive environment is 0.498, the fit with the target market is 0.485, and the speed of internationalization is 0.649, which expresses the strong predictive power in the structural model of the research. T-statistic was used to check the assumed relationships between the components.
Findings: The results of the hypothesis test showed that the drivers, which are considered as knowledge, perception and networks, have a significant effect on the competitive environment based on the domestic market and the foreign market, which shows the confirmation of the first hypothesis. Drivers have a significant effect on the suitability of the target market in the pharmaceutical industry, and therefore the second hypothesis is confirmed. The competitive environment has a significant effect on the speed of internationalization in the pharmaceutical industry, and its coefficient is 0.852. The coefficient of effect of fit with the target market on the speed of internationalization in the pharmaceutical industry is 0.639, and the hypothesis that fit with the market has an effect on the speed of internationalization in the pharmaceutical industry is confirmed. The drivers on the speed of internationalization with the control variable of production measures in the pharmaceutical industry has an impact factor of 0.521 and therefore this hypothesis is confirmed. To test the main hypothesis, 5 sub-hypotheses have been considered, and the t-statistics related to all fields are higher than 1.96 and confirmed, so all five research hypotheses are confirmed.
Conclusion: As the results showed that the competitive environment and fit with the target market have a great effect on the speed of internationalization, so that the analysis of competitive environments and the extraction of the consumption behavior of the target market on the type of intensity and speed of internationalization as well as the international branding of the business. And technological works have an important effect. As different markets have different conditions, different consumption behavior, different standard and quality characteristics and different feedbacks regarding the performance of businesses, therefore, they require different entry suitability and analysis. So that different markets have different conditions, different consumption behavior, different standard and quality characteristics and different feedbacks regarding the performance of imported businesses. Also, by adjusting their business model and providing value propositions in accordance with those markets and adjusting production or service measures required in those markets, these businesses can have a high level of entry and impact, and thus companies can export With the least involvement in local activities, they can offer their products in foreign markets and earn more profit. The results of the current research can be used in the countries of the region due to the structural similarity of the drug supply chain and the value chain in drug raw materials and the type of drug marketing. This model was tested for the first time in the pharmaceutical structure of Iran, the pharmaceutical industry is worthy of internationalization, but they have not reached the speed of internationalization.

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References

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