The networks-innovation-firm performance relationship: does it hold good in Indian pharmaceutical industry?
by Abhishek Nirjar; Manaswini Acharya; Aniruddha
International Journal of Business Innovation and Research (IJBIR), Vol. 16, No. 4, 2018

Abstract: This research is set in the Indian pharmaceutical industry and presents the impact of networks both social and business on innovation and impact of these parameters on firms' performance. The study also considered the impact of firm age on the networks and innovation capability of the firm. Data for 140 firms was captured from Capitaline database. The results have shown positive association between business networks and its impact on innovation capabilities of the firm. Networks-social and business, have a positive association with firm performance while R&D expenditure was found to have a positive impact on firm performance. The impact of patents however has been found to be insignificant as the Indian pharmaceutical industry is more focused on developing the generic drugs. Firm age is found to have a positive impact on networks, while it is not significant for R&D expenditure as firms are taking the alliance route.

Online publication date: Thu, 05-Jul-2018

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