This study explores the nature of the degree of internationalization and performance (DOI-P) relationship in the context of the Indian pharmaceutical industry. The study relies on the stages model of internationalization to posit for specific relationships between DOI and performance in the distinct stages of international expansion. The findings are different from those of similar studies on emerging markets that have used a broader set of industries in their sample. Researchers should adopt caution when making any generalization of the DOI-P relationship across contexts. Industry context in certain instances can be more powerful than country context in shaping the DOI-P for particular firms. © 2008 Wiley Periodicals, Inc.