Strategy evolution in Central and Eastern European pharmaceutical firms 1992–2005

Abstract

᭹Since the early 1990s the CEE markets have undergone a major transition. This has led to changes in ownership for many indigenous fi rms as they moved from state to private control. ᭹ This paper contributes to a gap in existing knowledge by developing understanding of how the realized strategic actions of these fi rms evolved. In order to contribute to this gap, evolution theory is applied to address the research question: 'How did the strategic actions of indigenous pharmaceutical fi rms evolve as the CEE region developed from a planned to a market economy?' ᭹ This is achieved through longitudinal mapping of the strategic actions realized by fi rms, comparison of patterns in temporal strategy development, together with identifi cation of factors that appear to have infl uenced this strategic change process. Using a qualitative research design the paper explores and compares how the realized strategic actions of LEK, Richter, and Pliva evolved from 1992-2005. ᭹ The fi ndings highlight a range of factors that had the potential to impact upon the strategic process for these fi rms. The research also shows that although there were some similarities in the strategic actions realized by the fi rms, in overall terms each fi rm packaged its realized strategic actions in a unique way.

Strategic responses to crisis

“…That is, one response might be a necessary precursor to another. Although previous work partly points into this direction (e.g., Langley, Fallon, & Kakabadse, 2009;Robbins & Pearce, 1992), we…”