Bio-technology international strategic alliances: The managerial perspectives of Malaysian firms

Ghani Ghani

doi:10.3844/ajebasp.2011.1.11

Abstract

Problem statement: Biotechnology is becoming one of the major concerns among large emerging economies including Malaysia. International strategic alliances may be one way to integrate emerging economies in their development with developed economies. The use of various forms of cooperation between firms of emerging economies and firms of developed countries can accelerate the process of transfer and adaptation of advances already reached in developed countries, as well as the development of new products and processes. However, there are few empirical studies on international strategic alliances of biotechnology firms have been conducted in emerging countries’ environment. In this study, the authors examine the views of Malaysian managing directors of prospective bio-tech international strategic alliances with European or US firms. Approach: Data examined in this study were collected using questionnaires filled in during executive face to face semi-structured interviews. Twenty-three firms associated with biotechnology were included. It represents approximately 20% of the estimated 120 firms operating in the biotechnology area in Malaysia. The authors also use a panel of specialists in order to classify independently two groups of firms: The most suitable and the least suitable to international strategic alliances. Results: Several differences concerning the perceived importance of prospective contributions were identified between the two groups of local firms. Conclusion: This study provides insights on the importance of contributions from a typical local (Malaysian) partner firm, as well as from a typical foreign (European or US) partner firm.

Highlights

Emerging economies are increasing their importance in the global economic environment
The trend is expected to gain momentum in coming years due to the fast relative growth of the economy of the developing versus developed countries and the strategies of firms trying to secure first-mover advantages in emerging markets benefiting from economies of scale and locational advantages
Regional groupings of high technology enterprises are expected to attract a large number of these investors in emerging economies, as is the case of Malaysian Government Linked Companies in Malaysia (Ang, 2008)

Summary

INTRODUCTION

Emerging economies are increasing their importance in the global economic environment. Particular, co-operation success is expected to be linked to the views of executives of the partners’ firms Links to important personalities on the local scene: regarding prospective contributions to the joint venture. Managers or experts in production, R and D or other technical area: This is usually seen as a contribution of the foreign partner because it is related to technology It was pointed out by Currall and Inkpen (2008) as an important contribution of the local partner. Beamish (1994) and Inkpen and Curall (2004), present it as one of the most important contributions of the foreign partner The former author emphasizes that the successful transfer of equipment or technology does not guarantee the joint venture success.

MATERIALS AND METHODS

DISCUSSION

Findings

CONCLUSION