ESC
Web of Science
Entrepreneurship and Sustainability Issues Open Access
Scopus - coverage starting with 2017 material
Received: 2017-02-22  |  Accepted: 2017-06-18  |  Published: 2017-09-29

Title

Economic success and sustainability in pharmaceutical sector: a case of Indian SMEs


Abstract

Our paper examines one of the key aspects of the organizational economics – the factors of economic success and sustainability of the pharmaceutical small and medium enterprises (SMEs) in India. Indian pharmaceutical industry is known for its high fragmentation and weak generic based R&D initiatives. The study uses inflation adjusted cross section data for 20 SMEs in the year 2013-2014 and applies OLS regression model with robust standard errors. It has found that exports, R&D expenditure, and previous year profits have exercised positive impact on SMEs’ growth. The negative, yet statistically significant influence of advertising and marketing expenditure highlights the need to rethink about strategic management policies of SMEs. Our results suggest that SMEs are required to pay more attention towards the global market expansion and value creation through R&D investment, as a part of their long-term growth and survival strategy.


Keywords

economic success, sustainability, pharmaceutical industry, economic growth, R&D


JEL classifications

D21 , D23 , L20 , O40


URI

http://jssidoi.org/jesi/article/141


DOI


HAL


Pages

157-168


This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License

Authors

Niño-Amézquita, José
Regional Center for Productivity and Innovation of Boyaca, Bogota, Colombia http://www.crepib.org.co
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Legotin, Fedor
Ural State University of Economics, Yekaterinburg, Russian Federation http://www.usue.ru
Articles by this author in: CrossRef |  Google Scholar

Barbakov, Oleg
Tyumen Industrial University, Tyumen, Russian Federation https://www.tyuiu.ru
Articles by this author in: CrossRef |  Google Scholar

Journal title

Entrepreneurship and Sustainability Issues

Volume

5


Number

1


Issue date

September 2017


Issue DOI


ISSN

ISSN 2345-0282 (online)


Publisher

VšĮ Entrepreneurship and Sustainability Center, Vilnius, Lithuania

Cited

Google Scholar

Article views & downloads

HTML views: 266  |  PDF downloads: 191

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