{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,3,16]],"date-time":"2026-03-16T14:29:32Z","timestamp":1773671372180,"version":"3.50.1"},"reference-count":99,"publisher":"Institute for Operations Research and the Management Sciences (INFORMS)","issue":"10","content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":["Management Science"],"published-print":{"date-parts":[[2025,10]]},"abstract":"<jats:p> This study examines how domestic and foreign firms in the private sector respond to a reduction in competition from the public sector. Our analysis exploits the sudden suspension of production licenses of vaccine-manufacturing public sector units (PSUs) in January 2008 in India, home to more than 1.2 billion people at that time. Although the suspension presented a window of opportunity for private sector firms, the opportunity was laden with high uncertainty. Despite this uncertainty, we find that the suspension was associated with revenue gains driven by new product introductions and that these gains persist even after the supply suspension revocation in February 2010. Importantly, unlike domestic firms, foreign firms gain little. We explore potential mechanisms and find evidence consistent with one of them being the major reason for the differing impact: Domestic firms better navigate the challenges arising from political pluralism, an institutional feature characterized by a lack of political alignment between national and subnational governments. In the presence of political alignment, domestic firms do not have a comparative advantage over foreign firms. Our evidence thus highlights that even an uncertain and transitory window of opportunity arising from a controversial reduction in competition from the public sector can lead to a fundamental market restructuring in ways that can diverge from the intended policy objective. In particular, domestic firms\u2019 ability to manage political pluralism is a core mechanism explaining their comparative advantage over foreign firms in the wake of a national crisis. <\/jats:p><jats:p> This paper was accepted by Alfonso Gambardella, business strategy. <\/jats:p><jats:p> Funding: This work was supported by the National University of Singapore [Start-Up Research Grant A-0003843-00-00], the University of Minnesota [Summer Research Grant], and the Indian School of Business [Research Grant]. <\/jats:p><jats:p> Supplemental Material: The online appendices and data files are available at https:\/\/doi.org\/10.1287\/mnsc.2024.06174 . <\/jats:p>","DOI":"10.1287\/mnsc.2024.06174","type":"journal-article","created":{"date-parts":[[2025,2,19]],"date-time":"2025-02-19T08:54:27Z","timestamp":1739955267000},"page":"8884-8907","source":"Crossref","is-referenced-by-count":1,"title":["How Do Domestic and Foreign Firms Respond to a Reduction in Competition from the Public Sector? Evidence from Vaccine Markets in India"],"prefix":"10.1287","volume":"71","author":[{"ORCID":"https:\/\/orcid.org\/0000-0003-2099-2484","authenticated-orcid":false,"given":"Arzi","family":"Adbi","sequence":"first","affiliation":[{"name":"National University of Singapore Business School, Singapore, Singapore 119245"}]},{"ORCID":"https:\/\/orcid.org\/0000-0002-3464-4088","authenticated-orcid":false,"given":"Anant","family":"Mishra","sequence":"additional","affiliation":[{"name":"Carlson School of Management, University of Minnesota, Minneapolis, Minnesota 55455"}]},{"ORCID":"https:\/\/orcid.org\/0000-0002-4684-2858","authenticated-orcid":false,"given":"Chirantan","family":"Chatterjee","sequence":"additional","affiliation":[{"name":"University of Sussex Business School, Brighton BN1 9RH, United Kingdom"}]}],"member":"109","reference":[{"key":"B1","doi-asserted-by":"publisher","DOI":"10.1162\/0033553041502144"},{"key":"B2","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.2022.4313"},{"key":"B3","doi-asserted-by":"publisher","DOI":"10.1111\/poms.12948"},{"key":"B4","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.47.5.611.10482"},{"key":"B5","doi-asserted-by":"publisher","DOI":"10.1287\/stsc.2021.0137"},{"issue":"1","key":"B6","first-page":"177","volume":"103","author":"Aghion P","year":"2013","journal-title":"Amer. Econom. Rev."},{"key":"B7","doi-asserted-by":"publisher","DOI":"10.5465\/19416520802211446"},{"key":"B8","doi-asserted-by":"publisher","DOI":"10.1515\/9781400829828"},{"key":"B9","doi-asserted-by":"publisher","DOI":"10.1002\/smj.2984"},{"key":"B10","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.1110.1469"},{"key":"B11","doi-asserted-by":"publisher","DOI":"10.1257\/aer.20171742"},{"key":"B12","doi-asserted-by":"publisher","DOI":"10.1016\/S1473-3099(08)70089-6"},{"key":"B13","doi-asserted-by":"publisher","DOI":"10.1287\/orsc.2021.1491"},{"key":"B14","doi-asserted-by":"publisher","DOI":"10.1257\/aer.90.2.135"},{"key":"B15","doi-asserted-by":"publisher","DOI":"10.2307\/41165788"},{"key":"B16","doi-asserted-by":"publisher","DOI":"10.1002\/smj.2996"},{"key":"B18","unstructured":"Berman P, Bhawalkar M, Jha R (2017) Government financing of health care in India since 2005: What was achieved, what was not and why. A Report of the Resource Tracking and Management Project, Harvard TH Chan School of Public Health, Boston."},{"key":"B19","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.2014.2036"},{"key":"B20","volume-title":"Transforming India\u2019s Vaccine Market","author":"Bhadoria V","year":"2012"},{"key":"B21","doi-asserted-by":"publisher","DOI":"10.1287\/stsc.2019.0083"},{"key":"B22","doi-asserted-by":"publisher","DOI":"10.1002\/smj.2643"},{"key":"B23","doi-asserted-by":"publisher","DOI":"10.1002\/smj.3008"},{"key":"B24","doi-asserted-by":"publisher","DOI":"10.1162\/rest.90.3.414"},{"key":"B25","volume-title":"Build, Borrow, or Buy: Solving the Growth Dilemma","author":"Capron L","year":"2012"},{"key":"B26","doi-asserted-by":"publisher","DOI":"10.1002\/smj.3140"},{"key":"B28","doi-asserted-by":"publisher","DOI":"10.1111\/j.1430-9134.1994.00481.x"},{"key":"B29","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.2017.2794"},{"key":"B30","doi-asserted-by":"publisher","DOI":"10.1177\/1536867X20909691"},{"key":"B31","doi-asserted-by":"publisher","DOI":"10.1002\/smj.2776"},{"key":"B32","volume-title":"Causal Inference","author":"Cunningham S","year":"2021"},{"key":"B33","doi-asserted-by":"publisher","DOI":"10.1257\/pol.20130370"},{"key":"B34","doi-asserted-by":"publisher","DOI":"10.1002\/smj.2599"},{"key":"B35","doi-asserted-by":"publisher","DOI":"10.1016\/j.jpubeco.2006.11.005"},{"key":"B36","doi-asserted-by":"publisher","DOI":"10.1162\/003355398555667"},{"key":"B37","doi-asserted-by":"publisher","DOI":"10.1002\/smj.2590"},{"key":"B38","doi-asserted-by":"publisher","DOI":"10.1257\/aer.20141301"},{"key":"B39","doi-asserted-by":"publisher","DOI":"10.1257\/pol.20160068"},{"key":"B40","doi-asserted-by":"publisher","DOI":"10.1111\/j.1468-0084.1979.mp41004003.x"},{"key":"B41","doi-asserted-by":"publisher","DOI":"10.1057\/palgrave.jibs.8490593"},{"key":"B42","doi-asserted-by":"publisher","DOI":"10.1017\/CBO9781139084444"},{"key":"B43","doi-asserted-by":"publisher","DOI":"10.1146\/annurev-economics-111809-125029"},{"key":"B44","doi-asserted-by":"publisher","DOI":"10.1162\/REST_a_00056"},{"key":"B45","doi-asserted-by":"publisher","DOI":"10.1257\/jel.47.3.699"},{"key":"B46","doi-asserted-by":"publisher","DOI":"10.1016\/S0047-2727(00)00158-4"},{"key":"B47","unstructured":"Frost & Sullivan (2013) Strategic analysis of vaccine market in India. Industry report, Chennai, India."},{"key":"B48","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.2020.3634"},{"key":"B49","doi-asserted-by":"publisher","DOI":"10.7551\/mitpress\/13941.001.0001"},{"key":"B50","doi-asserted-by":"publisher","DOI":"10.1287\/orsc.2022.1616"},{"key":"B51","doi-asserted-by":"publisher","DOI":"10.1162\/rest.88.3.563"},{"key":"B52","volume-title":"Redefining Global Strategy: Crossing Borders in a World Where Differences Still Matter","author":"Ghemawat P","year":"2007"},{"key":"B53","doi-asserted-by":"publisher","DOI":"10.1111\/j.1467-9701.2012.01485.x"},{"key":"B55","doi-asserted-by":"publisher","DOI":"10.1257\/aer.102.7.3594"},{"issue":"3","key":"B56","first-page":"1264","volume":"34","author":"Hamermesh DS","year":"1996","journal-title":"J. Econom. Literature"},{"key":"B57","doi-asserted-by":"publisher","DOI":"10.1093\/jleo\/16.2.334"},{"key":"B58","doi-asserted-by":"publisher","DOI":"10.1287\/orsc.1040.0091"},{"key":"B59","doi-asserted-by":"publisher","DOI":"10.1515\/bap.1999.1.3.261"},{"key":"B60","doi-asserted-by":"publisher","DOI":"10.5465\/amr.2005.16387892"},{"key":"B62","doi-asserted-by":"publisher","DOI":"10.1002\/smj.860"},{"issue":"31","key":"B63","volume":"58","author":"Hooda SK","year":"2023","journal-title":"Econom. Political Weekly"},{"key":"B64","volume-title":"The International Operations of National Firms: A Study of Direct Foreign Investment","author":"Hymer S","year":"1976"},{"key":"B65","volume-title":"District Level Household and Facility Survey (DLHS-3), 2007-08: India","author":"International Institute for Population Sciences","year":"2010"},{"key":"B66","doi-asserted-by":"publisher","DOI":"10.1287\/orsc.2021.1451"},{"key":"B67","doi-asserted-by":"publisher","DOI":"10.1002\/smj.2705"},{"key":"B68","doi-asserted-by":"publisher","DOI":"10.1002\/smj.3061"},{"key":"B69","doi-asserted-by":"publisher","DOI":"10.1177\/00018392231217676"},{"key":"B70","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.40.1.123"},{"key":"B111","doi-asserted-by":"crossref","unstructured":"Kostova T, Zaheer S (1999) Organizational legitimacy under conditions of complexity: The case of the multinational enterprise. Acad. Management Rev. 24(1):64\u201381.","DOI":"10.2307\/259037"},{"key":"B71","doi-asserted-by":"publisher","DOI":"10.5465\/amj.2010.0370"},{"key":"B72","first-page":"201","volume-title":"Handbook of Health Economics","volume":"2","author":"Kremer M","year":"2011"},{"key":"B73","first-page":"491","volume":"139","author":"Lahariya C","year":"2014","journal-title":"Indian J. Medical Res."},{"key":"B74","doi-asserted-by":"publisher","DOI":"10.1002\/smj.2204"},{"key":"B75","doi-asserted-by":"publisher","DOI":"10.2307\/2111665"},{"key":"B76","doi-asserted-by":"publisher","DOI":"10.1002\/smj.918"},{"key":"B77","doi-asserted-by":"publisher","DOI":"10.1002\/smj.3478"},{"key":"B78","doi-asserted-by":"publisher","DOI":"10.1002\/smj.2961"},{"key":"B79","doi-asserted-by":"publisher","DOI":"10.1002\/smj.540"},{"key":"B80","doi-asserted-by":"publisher","DOI":"10.1287\/orsc.1090.0472"},{"key":"B110","doi-asserted-by":"crossref","unstructured":"Moser P, Voena A (2012) Compulsory licensing: Evidence from the trading with the enemy act. Amer. Econom. Rev. 102(1):396\u2013427.","DOI":"10.1257\/aer.102.1.396"},{"key":"B81","doi-asserted-by":"publisher","DOI":"10.1136\/bmj.f2635"},{"key":"B84","doi-asserted-by":"publisher","DOI":"10.1002\/smj.4250121008"},{"key":"B109","doi-asserted-by":"crossref","unstructured":"Quelin BV, Cabral S, Lazzarini S, Kivleniece I (2019) The private scope in public\u2013private collaborations: An institutional and capability-based perspective. Organ. Sci. 30(4):831\u2013846.","DOI":"10.1287\/orsc.2018.1251"},{"key":"B86","doi-asserted-by":"publisher","DOI":"10.1002\/smj.2970"},{"key":"B87","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.1110.1327"},{"key":"B88","doi-asserted-by":"publisher","DOI":"10.1177\/1536867X19830877"},{"key":"B89","doi-asserted-by":"publisher","DOI":"10.1016\/j.jeconom.2020.06.003"},{"key":"B90","doi-asserted-by":"publisher","DOI":"10.1111\/j.1756-2171.2012.00168.x"},{"key":"B91","doi-asserted-by":"publisher","DOI":"10.1002\/smj.3199"},{"key":"B92","doi-asserted-by":"publisher","DOI":"10.1057\/s41267-016-0032-1"},{"key":"B98","doi-asserted-by":"publisher","DOI":"10.1002\/1097-0266(200010\/11)21:10\/11<1147::AID-SMJ128>3.0.CO;2-R"},{"key":"B99","doi-asserted-by":"publisher","DOI":"10.5465\/amj.2015.0641"},{"key":"B100","doi-asserted-by":"publisher","DOI":"10.1017\/CBO9781139227162"},{"key":"B101","doi-asserted-by":"publisher","DOI":"10.1002\/smj.3137"},{"key":"B102","doi-asserted-by":"publisher","DOI":"10.1093\/oso\/9780195078244.001.0001"},{"key":"B103","doi-asserted-by":"publisher","DOI":"10.1016\/S0304-4076(98)00033-5"},{"key":"B104","doi-asserted-by":"publisher","DOI":"10.1002\/smj.2233"},{"key":"B105","doi-asserted-by":"publisher","DOI":"10.2307\/256683"},{"key":"B106","doi-asserted-by":"publisher","DOI":"10.1002\/(SICI)1097-0266(199706)18:6<439::AID-SMJ884>3.0.CO;2-Y"},{"key":"B107","doi-asserted-by":"publisher","DOI":"10.1002\/smj.2619"},{"key":"B108","doi-asserted-by":"publisher","DOI":"10.1002\/smj.3472"}],"container-title":["Management Science"],"original-title":[],"language":"en","link":[{"URL":"https:\/\/pubsonline.informs.org\/doi\/pdf\/10.1287\/mnsc.2024.06174","content-type":"unspecified","content-version":"vor","intended-application":"similarity-checking"}],"deposited":{"date-parts":[[2025,10,2]],"date-time":"2025-10-02T12:48:26Z","timestamp":1759409306000},"score":1,"resource":{"primary":{"URL":"https:\/\/pubsonline.informs.org\/doi\/10.1287\/mnsc.2024.06174"}},"subtitle":[],"short-title":[],"issued":{"date-parts":[[2025,10]]},"references-count":99,"journal-issue":{"issue":"10","published-print":{"date-parts":[[2025,10]]}},"alternative-id":["10.1287\/mnsc.2024.06174"],"URL":"https:\/\/doi.org\/10.1287\/mnsc.2024.06174","relation":{},"ISSN":["0025-1909","1526-5501"],"issn-type":[{"value":"0025-1909","type":"print"},{"value":"1526-5501","type":"electronic"}],"subject":[],"published":{"date-parts":[[2025,10]]}}}