Organizational Dynamics and Strcuture in the Chinese Pharmaceutical Industry: A Technological System Perspective

This paper investigates the institutional and organizational sources of change and persistence in the technological systems which bring new products to market in the Chinese pharmaceutical industry. Even after fifteen years of economic reforms, research institutes, manufacturers and wholesalers have not moved significantly beyond their functional boundaries established decades ago under the command economy. The industry is still characterized by organizationally dis-integrated technological systems. However, the dynamics underlying this structure have change dramatically with reforms. Further, there are signs that these organizations are pursuing alternative strategies for securing complementary assets, which is leading to greater variation in technological system structure.