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Inter-firm collaboration in new product development in Chinese pharmaceutical companies

Asia Pacific Journal of Management volume 33, pages 165–193 (2016)Cite this article

Abstract

High-tech firms increasingly rely on inter-firm collaboration (IFC) in new product development (NPD). While there is a growing research interest in exploring the economic rationale of IFC through the transaction cost economics (TCE) and the resource synergy of IFC through the resource-based view of the firm (RBV), little attention has been given to the institution-based view (IBV) that also has important implications for firms’ choice of IFC. In particular, how national institutional environment affects IFC in the NPD process remains under-researched. This study aims to contribute to the literature by extending our understanding of the role of IFC in firms’ NPD process, taking into account transactional, resource, and institutional factors. Based on a case study of two firms: a state-owned and a private pharmaceutical firm in China, our research identifies three key forms of IFC, which are dynamic at different stages of NPD and contingent upon an array of institutional, resource, and transactional rationales underpinning firms’ choice of different forms of IFC. Our study is the first one that investigates the role of IFC in the NPD process bringing together the IBV, RBV, and TCE perspectives.

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Acknowledgments

This paper is based on a research project supported by the Economic and Social Research Council, the UK (Award No.: RES-061-25-0023).

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Authors and Affiliations

  1. Lecturer in Strategy and Entrepreneurship, Brunel Business School, Brunel University London, Kingston Lane, Uxbridge, Middlesex, UB8 3PH, UK

    Xiaoqing Li

  2. Lecturer in Asian Business and International Human Resource Management, School of Management, Royal Holloway, University of London, Egham Hill, Egham, Surrey, TW20 0EX, UK

    Yu Zheng

  3. School of Management, Royal Holloway, University of London, Egham Hill, Egham, Surrvey, TW20 0EX, UK

    Catherine L. Wang

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Li, X., Zheng, Y. & Wang, C.L. Inter-firm collaboration in new product development in Chinese pharmaceutical companies. Asia Pac J Manag 33, 165–193 (2016). https://doi.org/10.1007/s10490-015-9451-y

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Keywords

  • Inter-firm collaboration
  • New product development
  • Chinese pharmaceutical companies
  • Resource-based view
  • Institution-based view
  • Transaction cost economies