Location Choice and Resource Mobilization
- Insights from the Internationalization Process of Chinese Pharmaceutical Biotech Companies Companies

Abstract

The rapid development of emerging market multinational firms (EMFs) in global markets has reshaped the global economic landscape. While substantial research exists, theoretical frameworks derived from studies on developed market multinational firms (DMFs) exhibit limitations in explaining the distinct behaviors of EMFs. This dissertation focuses on the internationalization of Chinese pharmaceutical enterprises, attempting to provide new evidence for explaining the behaviors of EMFs that are different from those of DMFs.
To answer research questions of “Why do Chinese pharmaceutical enterprises choose developed markets as the first batch of international host countries?” and “To enter developed markets, how do Chinese pharmaceutical enterprises mobilize resources?”, the dissertation employs a case study methodology. Data were collected through structured questionnaires and interviews with key personnel from sample enterprises and analyzed by the thematic analysis method.
Key findings reveal a push-pull model in location selection and a capability-based framework for resource mobilization. Location decisions are shaped by the interplay of domestic push factors (e.g., low margin, intense competition, policy restrictions, limitations of domestic resources) and foreign pull factors (e.g., competitive benefits, advantageous policies, advanced technology and R&D resources, advantageous policies). In resource mobilization, Chinese biopharmaceutical firms acquire new products and tech via direct sales and licensing for market expansion. Resource used in cooperation focuses on getting funds, sales channels, and market knowledge. Emerging markets transcend the incremental development stages stipulated by traditional theories, directly posing challenges to the markets of developed countries, and reconfigure institutional and relational resources, which enriches the connotations of internationalization theory but also offers new perspectives and research directions for Resource-Based Theory. For managerial implications, enterprise managers can optimize their internationalization strategic decisions based on the theoretical models and practical suggestions proposed in this study.