Impact of Inward Internationalization on Outward Internationalization in Enhancing Organizational Capabilities in Iranian Pharmaceutical Companies

Abstract

Background: The objective of this study was to propose a model for examining the impact of inward internationalization on outward internationalization in Iranian pharmaceutical companies by focusing on organizational capabilities. Methods: Qualitative research was employed, and the grounded theory approach was utilized for data analysis. The study involved conducting interviews with 16 individuals who possessed experience in international activities within the pharmaceutical sector and expertise, using the snowball sampling method. The data gathered from the interviews underwent open, axial, and selective coding analyses, resulting in the development of a paradigm model of internationalization within the pharmaceutical industry. The paradigm model is composed of causal conditions, background conditions, intervening conditions, central phenomena, strategies, and consequences. Results: The research findings indicated that causal factors of internationalization encompass learning from other countries, updating medical and technical knowledge, expanding activities beyond domestic markets, facilitating production quality improvement, and promoting growth within the pharmaceutical industry. Strategies for internationalization include adopting an international perspective, implementing effective macro-level policies, utilizing long-term strategies, enhancing workforce professional capabilities through training, improving standards and documentation, devising strategies for rational budget utilization, planning for optimal capacity utilization, and strengthening international communication and political relationships. Conclusion: Ultimately, the consequences of inward internationalization and the enhancement of organizational capabilities lead to outward internationalization and a favorable position within the global pharmaceutical industry, improvements in organizational capabilities and international relations, development of cross-border business, economic prosperity within the pharmaceutical industry, and heightened commitment to foreign markets.

Keywords

• inward internationalization
• outward internationalization
• grounded theory
• organizational capabilities