A Comparative Study on South Korean Bio-pharmaceutical Company Internationalization Strategies: Uppsala Model and Born Global Perspectives

Abstract

Purpose This study aims to draw implications from the nation’s leading bio-pharmaceutical companies by comparing their international strategies. In particular, this study adopts two theories related to internationalization, the uppsala model and the born global perspective, considering that there are differences in business models and international strategies among the bio-pharmaceutical companies. Design/Methodology/Approach Academic papers, websites, and newspaper articles were used to collect information on the status of international entry of companies, and to analyze basic information. Next, interviews with three bio-pharmaceutical industry experts were conducted to verify this and confirm additional content. Interviewees were selected with actual and industrial research experience. Findings We found that GC Green Cross and Hanmi Pharmaceutical, which are expanding their business to biomedicine based on chemical synthetic drugs, are explained by the Uppsala model, while Celltrion and Samsung Biologics’ international strategy focused on biomedicine comes from a born global perspective. Research Implications By systematically analyzing South Korean bio-pharmaceutical company international strategies, this study found that each company has various international market entry modes depending on product characteristics and CEO’s intention. Furthermore, it was suggested that a differentiated international strategy by region and country is necessary. In a practical sense, besides, this study suggests South Korean bio-pharmaceutical companies need a step-by-step international market entry strategy in the future