Latecomers’ Isomorphic R&D Strategy and the Relationship With Performance: A Study on Chinese Pharmaceutical Firms

Abstract

Institutional environment plays a key role in shaping latecomers’ strategic choices. Conforming with the institutional environment is believed to alleviate uncertainties and resource deficiency for latecomers. However, does being isomorphic with institutional environment help latecomers in R&D activities that aims at making differences? The purpose of this study is to comprehensively explore how the interplay of institutional and competitive pressures from institutional environment manifests in latecomers’ R&D practices. Based on multiple case studies of four pharmaceutical firms in China, the occurrence of isomorphic R&D strategy and its relationship with performance have been uncovered in this paper. The subjective initiative and efficiency predictability of isomorphic R&D strategies are characterized through investigating its differences with general isomorphic behaviors. With these findings, this study provides a strategic approach to study institutional isomorphism, draws the attention on the dynamic interaction between institutional context and R&D strategies and adds to the literature on latecomer firms’ R&D strategies.