Abstract

http://ssrn.com/abstract=1622199
 
 

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The Impact of Intellectual Capital on International Business – An Analysis of Investments in Intellectual Capital & Export Performance


V. Kavida


Pondicherry University, Karaikal Campus - School of Management

N. Sivakoumar


Indira Gandhi College of Arts and Science

June 8, 2010


Abstract:     
International Business is understood as commercial activity which transcends borders. In the era of Globalization, the distinction between domestic business and international business has become insignificant. Most of the domestic firms go international due to some ‘proactive/reactive’ factors prevailing in the international economy and in the domestic economy. The competitive edge gives the firm an opportunity to expand its market both domestic and overseas. The characteristic change in the economy - from that of natural resource based to that of knowledge based - has not altered the game rules of competition. No more the competitive edge of a firm lies in the possession of tangible wealth, but in intangible assets. The competitive advantage of the firms in Knowledge economy depends on the effective utilization of the Intellectual Capital generated by them.

International Business takes many forms, viz. Technology Licensing, Franchising, Joint Ventures, Contract Manufacturing apart from, Exports and Imports. Many studies have substantiated the economic rationale for cross border investments and business on the plank of technology. But studies on the role of Intellectual Capital, acting as a ‘proactive’ agent of International Business finds limited mention. Exports in knowledge economy is driven and composed of Intellectual Capital. Strengthening this supposition, the Agreement on Trade Related aspects of Intellectual Property Rights (TRIPS) has brought to prominence the role of Intellectual Capital in International Business. This paper attempts to analyze the relationship between Intellectual Capital and Exports of Pharmaceutical industries in India to theorize that Intellectual Capital is a prominent determinant of export competitiveness for knowledge based companies.

Number of Pages in PDF File: 16

Keywords: Intellectual Capital, International Business, Knowledge Based Industries, Pharmaceutical Industry, Export Performance

JEL Classification: F14, F23, L65, O30, O31, O32, O33, O34, O38

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Date posted: June 8, 2010  

Suggested Citation

Kavida, V. and Sivakoumar, N., The Impact of Intellectual Capital on International Business – An Analysis of Investments in Intellectual Capital & Export Performance (June 8, 2010). Available at SSRN: http://ssrn.com/abstract=1622199 or http://dx.doi.org/10.2139/ssrn.1622199

Contact Information

V. Kavida (Contact Author)
Pondicherry University, Karaikal Campus - School of Management ( email )
Nehru Nagar, Karaikal
Pondicherry, 605 609
India
00914368230209 (Phone)
N. Sivakoumar
Indira Gandhi College of Arts and Science ( email )
Kadirkamam
Pondicherry, 605 009
India
00914132277868 (Phone)
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