ABSTRACT
Competition in the pharmaceutical industry has long focused on the innovation, of which result from intensive knowledge exploration and exploitation and appear as patent in the market. Smaller firms in the industry generally lack sufficient resources and subsequent knowledge within the organizational boundary. We propose that smaller firms in pharmaceutical industry seek to enhance its competitive advantage shall effectively explore knowledge from external organizations, and consequently combine such knowledge into current system for further exploiting. Establishing a subsidiary in foreign countries may satisfactorily serve this purpose. A foreign subsidiary will ...