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1 – 10 of 687Sajjad Shekarchian and Amir Albadvi
To gain the highest performance in technological efforts, firms have to balance their technology sourcing portfolio, i.e. they have to decide how to source the required technology…
Abstract
Purpose
To gain the highest performance in technological efforts, firms have to balance their technology sourcing portfolio, i.e. they have to decide how to source the required technology and whom to source from. This paper aims to tackle the issue by investigating the factors affecting the technology sourcing portfolio composition and the effect of the portfolio diversity on the performance outcome.
Design/methodology/approach
An inductive multiple case study was performed. Data of four biopharmaceutical producer firms in the period of 1998-2017 were collected. To expand the under study time span, the under study firms were all chosen from the first-comer ones. They entered the NBP arena in the 1998-2008 period, i.e. the period in which Iranian NBP industry was in its formation stage.
Findings
This paper detects the affecting technology-, firm-, industry- and national level factors in Iran biopharmaceutical industry and analyses their influencing mechanism. It is demonstrated that there are factors in a developing country, specifically Iran, which do not matter in developed countries. In addition, the synergistic effect of using various technology sources vehicles is confirmed.
Social implications
Inaccessibility to infrastructures and global communication barrier problems are features of Iran innovation system. Such features discourage the foreign firms to make long-term investments in Iran which consequently deprives Iranian firms of their knowledge and technology. The modification of these problems is suggested.
Originality/value
Factors such as access to infrastructures and global communication barrier are not prevalent in developed countries; therefore, less attention has been paid to them in the literature.
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The paper aims to take stock of China’s recent biopharmaceutical industry development by analyzing product innovation and changes in the firms’ product portfolios during the…
Abstract
Purpose
The paper aims to take stock of China’s recent biopharmaceutical industry development by analyzing product innovation and changes in the firms’ product portfolios during the five-year period between 2012 and 2017.
Design/methodology/approach
The paper introduces a classification of biopharmaceutical products. By applying the classification to the product data of China’s drug regulator, the CFDA, it becomes possible to trace the developments within the sector by looking at changes in the number of firms within each subgroup and changes in the number of subgroups in which each firm is involved. The classification allows an evaluation of the latest product innovation achievements.
Findings
The paper demonstrates a mild shakeout of firms in the relatively long-existing domestic market segments, a trend toward more specialized product portfolios and an enduring prevalence of innovation strategies aimed at exploiting relatively unpopulated domestic market niches instead of pioneering entirely new products. Especially the capability of upgrading to second-generation protein therapeutics has become a key criterion for separating the wheat and the chaff in China’s domestic sector. The paper moreover points out the relevance of acquisitions as a corporate growth strategy.
Research limitations/implications
The research does not consider complementary indicators, product pipelines in particular. Future research should compare patterns across emerging economies.
Originality/value
The paper is unique in using the CFDA database for systematic academic research on (bio)pharmaceutical innovation and in introducing a biopharmaceutical product classification to trace innovative activities and changes in corporate product portfolios over time.
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Mark J. Ahn and Daniel Dornbusch
Flawless product launches are critical success factors for biopharmaceutical companies due to increasing financial and technological risks. Industry benchmarking is widely used…
Abstract
Flawless product launches are critical success factors for biopharmaceutical companies due to increasing financial and technological risks. Industry benchmarking is widely used for managing biopharmaceutical product launch planning. However, while industry benchmarking may achieve operational efficiencies, it results in copying competitors and incremental productivity improvements rather than breakthrough in marketing innovation. This study extends the biopharmaceutical marketing framework from internally focused industry benchmarking to external competency‐based benchmarking (CBB) to build innovative practices by focusing on outstanding capabilities in far reaching industries and organizations. Adopting a CBB approach can lead to creating significant sources of organizational energy and creativity in biopharmaceutical marketing campaigns.
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Turanay Caner and Beverly B. Tyler
The purpose of this paper is to examine whether alliance portfolio R&D intensity contributes to biopharmaceutical firms' number of new product approvals and whether alliance…
Abstract
Purpose
The purpose of this paper is to examine whether alliance portfolio R&D intensity contributes to biopharmaceutical firms' number of new product approvals and whether alliance portfolio R&D intensity is more positively related to the number of new product approvals for pharmaceutical firms than for biotechnology firms.
Design/methodology/approach
The paper employs a random effects Poisson regression model using panel data of 821 firm year observations for 146 biopharmaceutical firms operating in the USA. The robustness of results is also checked with additional analysis, provided in an appendix.
Findings
The results of this study show that the R&D intensity of firms' alliance portfolios is positively related to their new product introductions. It is also found that alliance portfolio R&D intensity has a more positive impact on the pharmaceutical segment of the industry's new product introductions than those of the biotechnology segment.
Originality/value
The authors develop and test theory about how the combined effects of two dimensions of alliance portfolio configuration (size and relationship strength) positively impact new product development. The authors propose a two dimensional alliance portfolio configuration measure, alliance portfolio R&D intensity. They combine the number of R&D alliances relative to the total number of alliances in the portfolio with the differential strength of ties associated with resource commitments required to source information from upstream and downstream alliances.
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Masoud Afshari-Mofrad and Ali Salim
Motivated by the huge potential of biosimilars in the near future and rapid growth of Iranian biosimilar producing firms in recent two decades, this paper aims to explore the…
Abstract
Purpose
Motivated by the huge potential of biosimilars in the near future and rapid growth of Iranian biosimilar producing firms in recent two decades, this paper aims to explore the positioning of these firms in biopharmaceutical value chain and their path of technological capability building to extract policy-relevant advice.
Design/methodology/approach
As part of a two-year research project, an online questionnaire was designed and sent to biopharmaceutical experts in Iran between May and October 2016. Respondents came from biopharmaceutical firms. Also, 12 semi-structured interviews were conducted to analyze the path of capability building in Iranian biosimilar-producing firms.
Findings
The findings show that Iranian biopharmaceutical firms (BPFs) are mostly concentrated on “pharmaceutical development,”, “drug manufacturing” and “ after-sales services’ activities.” The study also demonstrates that most BPFs in Iran are at the “assimilative” level of capability and a few of them have recently moved toward the “adaptive” level.
Originality/value
The findings show that Iranian BPFs are mostly concentrated on “pharmaceutical development,” “drug manufacturing” and “after-sales services” activities. The study also demonstrates that most BPFs in Iran are at the “assimilative” level of capability and a few of them have recently moved toward the “adaptive” level.
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The purpose of this paper is to explore patterns as well as determinants of regional specialisation in China's biopharmaceutical industry. It identifies and characterizes…
Abstract
Purpose
The purpose of this paper is to explore patterns as well as determinants of regional specialisation in China's biopharmaceutical industry. It identifies and characterizes different types of enterprises engaged in the biopharmaceutical sector in terms of their business organisation and regional set up.
Design/methodology/approach
Based on data compilations not yet employed in academic analysis as well as personal interviews in China, structural determinants and driving forces of development are analysed against the background of the innovation systems literature.
Findings
The geography of innovation in China's biopharmaceutical industry is determined by both, government policy and the strategic location decisions of entrepreneurs. While local‐government support of firm clustering has contributed to a dispersion of industrial activity throughout China, the firms” networks are spanning clusters. Effectively, domestic firms are turning into multi‐regional companies locating activities such as R&D and manufacturing at different clusters.
Originality/value
The paper adds to the literature in so far as it throws light on an until now under‐researched field of China's innovation system. It identifies the concept of multi‐regionalism among domestic non‐state enterprises as an important parameter for understanding success and regional distribution of the industry.
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Pooja Thakur-Wernz and Christian Wernz
While the phenomenon of R&D offshoring has become increasingly popular, scholars have mostly focused on R&D offshore outsourcing from the point of view of the client firms, who…
Abstract
Purpose
While the phenomenon of R&D offshoring has become increasingly popular, scholars have mostly focused on R&D offshore outsourcing from the point of view of the client firms, who are often from an advanced country. By examining vendor firms, in this paper the authors shift the focus to the second party in the dyadic relationship of R&D offshore outsourcing. Specifically, the authors compare vendor firms with nonvendor firms from the same emerging economy and industry to look at whether vendor firms from emerging economies can improve their innovation performance by learning from their clients. The authors also look at the role of depth and breadth of existing technological capabilities of the vendor firm in its ability to improve its innovation performance.
Design/methodology/approach
This study is based on firm-level data from the Indian biopharmaceutical industry between 2005 and 2016. The authors use the Heckman two-stage model to control for self-selection by firms. The authors compare the innovation performance of vendor firms with nonvendor biopharmaceutical firms (group vs nongroup analysis) as well as innovation performance across vendor firms (within group comparison).
Findings
The authors find that, compared to nonvendor firms, R&D offshore outsourcing vendor firms from emerging economies have higher innovation performance. The authors argue that this higher innovation performance among vendor firms is due to learning from their clients. Among vendor firms, the authors find that the innovation gains are contingent upon the two factors of depth and breadth of the vendor firms' technological capabilities.
Research limitations/implications
This paper makes three contributions: First, the authors augment the nascent stream of research on innovation from emerging economy firms. The authors introduce a new mechanism for emerging economy firms to learn and upgrade their capabilities. Second, the authors contribute to the literature on global value chains, by showing that vendor firms are able to learn from their clients and upgrade their capabilities. Third, by examining the innovation by vendor firms, the authors contribute to the R&D offshore outsourcing, which has largely focused on the client.
Practical implications
The study findings have important implications for both clients and vendors. For client firms, the authors provide evidence that knowledge spillovers do happen, and R&D offshore outsourcing can turn vendors into potential competitors. This research helps firms from emerging economies by showing that becoming vendors for R&D offshore outsourcing is a viable option to learn from foreign firms and improve innovation performance. Going outside geographic boundaries may be a large hurdle for these resource-strapped, emerging economy firms. Providing offshore outsourcing services for narrow slices of R&D activities may be a starting point for these firms to upgrade their capabilities.
Originality/value
This paper is among the first to quantitatively study the innovation performance of vendor firms from emerging economies. The authors also contribute to the nascent literature on innovation in emerging economy firms by showing that providing R&D offshore outsourcing services to client firms from advanced countries can improve firms' innovation performance.
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Researchers continue to seek understanding of industrialization as a state managed process. How to create and implement new industries based on advanced knowledge is on the policy…
Abstract
Researchers continue to seek understanding of industrialization as a state managed process. How to create and implement new industries based on advanced knowledge is on the policy agenda of many advanced nations. Measures that promote these developments include national capacity building in science and technology, the formation of technology transfer systems, and the establishment of industrial clusters. What these templates often overlook is an analysis of use. This chapter aims to increase the understanding of the processes that embed new solutions in structures from an industrial network perspective. The chapter describes an empirical study of high-technology industrialization in Taiwan that the researcher conducts to this end. The study shows that the Taiwanese industrial model is oversimplified and omits several important factors in the development of new industries. This study bases its findings on the notions that resource combination occurs in different time and space, the new always builds on existing resource structures, and the users are important as active participants in development processes.
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Ali Babaee, Ali N. Mashayekhi and Rouholah HamidiMotlagh
This study aims to explore the emergence and development of new industries, especially in the context of developing countries, by considering industry emergence and development as…
Abstract
Purpose
This study aims to explore the emergence and development of new industries, especially in the context of developing countries, by considering industry emergence and development as a large-scale institutional change or transition.
Design/methodology/approach
The authors conducted an inductive case study research on the emergence of the biopharmaceutical industry in a developing country. The data on the emergence and development of Iran’s biopharmaceutical industry during 1990 and 2018 were collected through semi-structured interviews, participation in meetings, visits to companies and analysis of archival texts. The data analysis was an inductive and iterative process.
Findings
In the emergence and development of the biopharmaceutical industry, there have been a few key agents, institutional entrepreneurs (IEs), in both the state and private sectors, who played main roles. Moreover, the most important type of knowledge which has been crucial for the decision-making of IEs has been informal, tacit and institutional knowledge. Furthermore, the authors identified a mechanism, inter-institutional circulation, as being most effective in the transfer of institutional knowledge among IEs.
Originality/value
The originality of this study is applying insights from institutional entrepreneurship and knowledge management literature to the extant literature on industry emergence and development.
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Lei Li, Dan Li and Weilei (Stone) Shi
The purpose of this study is to investigate the multinationality‐performance (M‐P) relationship in the context of US biopharmaceutical small‐ and medium‐sized enterprises (SMEs).
Abstract
Purpose
The purpose of this study is to investigate the multinationality‐performance (M‐P) relationship in the context of US biopharmaceutical small‐ and medium‐sized enterprises (SMEs).
Design/methodology/approach
The study examines the M‐P relationship of SMEs from a single home country and in a specific industry.
Findings
The paper finds that geographic dispersion of both foreign subsidiaries and alliances affects SME performance negatively, albeit to a varying extent. Firm‐specific technological advantages alleviate the negative impact of geographic dispersion of both foreign subsidiaries and alliances, whilst firm‐specific marketing advantages mitigate the negative effect of only geographic dispersion of foreign alliances. The paper also addresses the direct and joint effects of firm‐specific advantages, country‐specific advantages, and the degree of internalization on SME performance systematically. Further, the results reveal some interesting differences between the venturing and the development stage of SME internationalization.
Originality/value
To the best of the authors' knowledge, there have been virtually no studies on the M‐P relationship which attempt to distinguish between subsidiary‐ and alliance‐based internationalization.
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