Internationalization strategy in the Pharmaceutical Industry of Iran:springboarding or incremental?

Aim and introduction

The globalization process has compelled pharmaceutical companies to expand and penetrate international markets, creating both challenges and opportunities. In this regard , the pharmaceutical industry is one of the industries which can have a significant role in economic development and value creation . Pharmaceutical industry is one of the strategic parts of the world economy and constitutes a significant portion of GDP . However, the growth of Iran’s pharmaceutical industry in global markets still lags behind its potential. This research aimed to identify and prioritize the characteristics of incremental and springboard internationalization strategy in the pharmaceutical industry.

Methodology

This research is applied in terms of purpose and was conducted with a mixed approach. In the qualitative part, the meta-synthesis method was used to identify the characteristics of one-off and gradual internationalization. For doing meta - synthesis in this research , Sandelowski and Barroso 's seven - step method ( 2007 ) was used . In this research , the criteria for adoption of articles include : ( 1 ) all studies published in english and persian , ( 2 ) published research after 2000 and 2001 , ( 3 ) published papers in prestigious scientific databases , ( 4 ) research with qualitative and mixed methods . For this purpose, studies conducted in the field of springboarding or incremental internationalization were collected in reputable databases during the years 2000-2025, and 31 articles were reviewed for final analysis. In the quantitative part, the BWM method was used to prioritize the characteristics of springboarding or incremental internationalization. The participants in the quantitative part were 10 senior managers of pharmaceutical companies in the country, who were selected using a purposive non-probability sampling method. The data collection tool was a questionnaire.

Finding

The results the first phase of the research showed that incremental internationalization features include three main categories of company 's internal capabilities (gradual learning , gradual innovation and low dependency to internationalization), company's life cycle (low speed, slow pace growthand , conservative strategies), external capabilities of the company (local networking and responsiveness to environment). The springboarding internationalization features include three main categories of firm's internal capabilities (radical innovation, active learning capacity and senior management readiness ) , the lifecycle of firms (high speed and aggressive strategies of exports), external competences of the company (international networking capability and an active response to the international environment).

Based on the results of the BWM method , the sum of final weights indicates that the incremental approach with average weight of criteria of 0.108 is more important than the springboarding with average weight of criteria of 0.019 .this indicates that the experts have evaluated the criteria for gradual movement in the pharmaceutical industry as a key factor for business success .The incremental internationalization is characterized by three main dimensions: internal firm capabilities (gradual learning, incremental innovation, and low dependence on internationalization), the internationalization life cycle (slow speed, stepwise growth, and conservative export strategies), and external firm capabilities (local networking and reactive adaptation to the environment). In contrast, rapid internationalization is associated with internal capabilities (radical innovation, active learning capacity, and international readiness of top management), the life cycle (high speed and aggressive export strategies), and external capabilities (international networking and proactive responses to the global environment).

Discussion and Conclusion

The results showed that although both springboarding or incremental approaches are important in the pharmaceutical industry of the country, incremental approach is more important . This finding is consistent with the uppsala theory and the classical models that emphasize gradual learning , experience accumulation and risk reduction in foreign markets .This suggests that, due to regulatory constraints, production complexities, and market risks, Iranian pharmaceutical companies are more inclined to pursue internationalization through gradual, stepwise processes. These insights provide valuable implications for policymakers and managers in designing appropriate strategies to enhance the global competitiveness of the pharmaceutical industry and to support broader economic and social development.One of the proposals is to develop a roadmap for international entry , even if the selection of a rapid approach is necessary , registration , legal compliance and marketing procedures are necessary.Strengthening R& D compliance with international standards, investment in R& D for designing products complying with the needs and rules of target markets.the formation of a pharmaceutical exporting consortium, a number of domestic companies to enter foreign markets at the same time, using joint capacities. many of the iranian pharmaceutical companies are better able to start with incremental reforms (especially in regional markets such as iraq, afghanistan, central asia), and after reinforcing the quality and brand, move faster and faster