The issues addressed in this study are: What internal factors
support changes in the international operations of new firms? and
What effect do these changes have on the firm's structure, control
system, and market performance.
To answer these questions, this work examines the internal
resources and market performance of a set of publicly traded
biotechnology firms. Findings support the view that new firms can
enter international markets through a variety of strategies,
including international joint ventures and subsidiaries. Changes in
international operations also are found to enhance firm market
performance when accompanied by changes in firm structure and
control systems. However, managers must be patient because market
performance only improves significantly two years after these
organizational changes have taken place.
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