Template-type: ReDIF-Paper 1.0
Author-Name: Cesaroni, Fabrizio
Author-Email: fabrizio.cesaroni@uc3m.es
Author-Workplace-Name: Universidad Carlos III de Madrid, and Istituto di Management,
	 Scuola Superiore Sant'Anna
Author-Name: Giarratana, Marco S.
Author-Email: marco.giarratana@uc3m.es
Author-Workplace-Name: Universidad Carlos III de Madrid
Author-Name: Martínez-Ros, Ester
Author-Email: martinez@merit.unu.edu
Author-Workplace-Name: Universidad Carlos III de Madrid, and UNU-MERIT 
Title: Technological capabilities and cost efficiency as antecedents of foreign market entry 
Abstract: This work explores which factors increase firms' propensity to enter
 	into international markets. The study draws on the resource-based view
 	and assesses the effect played by firms' technological capabilities and
 	cost structures on entry. While many research papers consider those two
 	factors to be independent one from the other, this study focuses on
 	their interactive effect. Empirical analysis covers the whole population
 	of Spanish pharmaceutical firms over the period 1995-2004. By using data
 	on trademarks filed at the United States Patent and Trademark Office
 	(USPTO), the study identifies those firms that have entered the US
 	market with branded products. Then, the study uses a hazard model to
 	empirically estimate which firms' resources and capabilities affect the
 	probability of entry. Results show that firms can maximize the
 	likelihood of entry in foreign markets by pursuing hybrid competitive
 	strategies that combine together scope economies and cost efficiency.   
Classification-JEL: F2, M16, O30
Keywords: Innovation and R&D, Patents, Trademarks, Competitive Advantage, Firm-Specific
	 Advantages, Foreign Market Entry.  
Series: UNU-MERIT Working Papers
Creation-Date: 2012
Number: 049
File-URL: http://www.merit.unu.edu/publications/wppdf/2012/wp2012-049.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2012049