Open innovation and firms' performance: State of the art and empirical evidences from the bio-pharmaceutical industry

The research presented in this paper explores the effect of inbound, outbound and coupled open innovation practices on firms' performances in the biopharmaceutical industry. Specifically, although existing researches on open innovation effectiveness have separately investigated the effect of open innovation practices on innovation and financial performance, this study evaluates the concurrent effect of these practices on both such performance dimensions in a single framework. We state the importance for a manager to explore concurrently the influence of specific open innovation practices both on innovation and economic-financial performance. We empirically test our framework on a sample of 120 companies listed on the NASDAQ biotechnology index

The multiple dimensions of the interfirm network: the critical sources of product innovation

This dissertation examines the impacts of interfirm variables on both invention and commercialization activities, following Greve’s (2003) suggestion that innovation research will be enriched if more studies integrate invention and commercialization activities to understand the entire innovation development process. Utilizing two established theoretical perspectives—organizational learning and institutional theory—six sets of hypotheses are developed containing the following interfirm variables: 1) direct and indirect ties, 2) strength of direct ties, 3) structural holes, 4) prominence of direct partners, 5) exploration and exploitation partners, and 6) horizontal and vertical networks. The dissertation also predicts that these interfirm variables would contribute to either invention or commercialization activities. Examining 262 publicly traded biopharmaceutical firms from 1986 to 2003, the study demonstrates that the interfirm variables significantly influence the invention and commercialization outcomes. While some interfirm variables positively influence the number of patents of a focal firm, they could have a negative impact upon the number of marketed drug applications and revenue. A managerial implication from the findings is that a focal firm may want to clarify its objectives before engaging in any interfirm collaboration by examining the multiple dimensions of its interfirm network and to identify its posture toward alliances. Due to the complexity and length of invention and commercialization activities, future research is warranted to investigate further the impacts of these interfirm predictors on important, but relatively ignored, product innovation outcomes (i.e., the number of new projects and licensing, marketing, and sales fees)

Investigating the impact of networking capability on firm innovation performance:using the resource-action-performance framework

The author's final peer reviewed version can be found by following the URI link. The Publisher's final version can be found by following the DOI link.Purpose The experience of successful firms has proven that one of the most important ways to promote co-learning and create successful networked innovations is the proper application of inter-organizational knowledge mechanisms. This study aims to use a resource-action-performance framework to open the black box on the relationship between networking capability and innovation performance. The research population embraces companies in the Iranian automotive industry. Design/methodology/approach Due to the latent nature of the variables studied, the required data are collected through a web-based cross-sectional survey. First, the content validity of the measurement tool is evaluated by experts. Then, a pre-test is conducted to assess the reliability of the measurement tool. All data are gathered by the Iranian Vehicle Manufacturers Association (IVMA) and Iranian Auto Parts Manufacturers Association (IAPMA) samples. The power analysis method and G*Power software are used to determine the sample size. Moreover, SmartPLS 3 and IBM SPSS 25 software are used for data analysis of the conceptual model and relating hypotheses. Findings The results of this study indicated that the relationships between networking capability, inter-organizational knowledge mechanisms and inter-organizational learning result in a self-reinforcing loop, with a marked impact on firm innovation performance. Originality/value Since there is little understanding of the interdependencies of networking capability, inter-organizational knowledge mechanisms, co-learning and their effect on firm innovation performance, most previous research studies have focused on only one or two of the above-mentioned variables. Thus, their cumulative effect has not examined yet. Looking at inter-organizational relationships from a network perspective and knowledge-based view (KBV), and to consider the simultaneous effect of knowledge mechanisms and learning as intermediary actions alongside, to consider the performance effect of the capability-building process, are the main advantages of this research

Knowledge transfer and the use of social networks in the biopharmaceutical industry : an investigation into the micro-foundations of external absorptive capacity

In order to grow, the pharmaceutical sector has had to heavily rely on both formal and informal innovation networks. However, many analysts consider that the industry has not achieved its growth potential and suggest that this is in part due to the inherent organisational barriers to knowledge transfer that exist in the pharmaceutical sector. This thesis provides a critical review of the knowledge transfer literature; with particular reference to absorptive capacity, social capital and external knowledge transfer meta-routines. The study takes a pragmatic critical realist approach, using a two stage critical incident technique to elucidate the micro-foundations of problem solving routines as a proxy for knowledge transfer. Thematic analysis on the resulting narratives identifies routinized patterns of information seeking behaviour, reveals the micro-foundations of template use and provides insights into how scientists recognise value in the knowledge that they find. The study answers calls to research the role of the individual in organisational routines; to uncover the micro-foundations of external absorptive capacity and to determine how value is recognised in new knowledge. A model is proposed that suggests that recognising the value of new knowledge is a construct that is influenced by factors which affect the perceived information quality, the relative subjectivity of the solution and the source’s social-identity. The value of knowledge is also further corroborated with the support of other materials or through a wider stakeholder involvement. The study has adopted a ‘strategy-as-practice’ approach and contributes to organisational practice by examining how informal external knowledge transfer through problem solving in a biopharmaceutical organisation is accomplished. These insights enable the author to suggest a number of managerial strategies by which pharmaceutical managers might recognise, optimise and facilitate the use of informal networks; whilst protecting their intellectual property and maintaining the potential for innovation

Biopharmaceutical entrepreneurship in two Japanese and French bioclusters: differences in founder profiles and experience

International audienceFavoured by genetic engineering breakthroughs, a new type of firm has emerged in the pharmaceutical industry. New Biotechnology Firms (NBFs) are ‘bridging institutions', accelerating the commercialisation of science from academia to the pharmaceutical market and facilitating technological incursions into drug development or therapeutic paths yet unexplored. As such, they have raised industrial and political interest around the world. Successes can be outstanding and some countries seem to offer much more favourable environments than others. Countries' performances are usually benchmarked against their provision of favourable resources and institutions, but this article takes an alternative route by considering the entrepreneurial side of NBF as a major factor in their emergence. ‘Entrepreneur biographies' and firm creation experience were collected in two comparable bioclusters in France (Evry) and Japan (Kobe), on 11 Japanese and French drug development NBFs. The result shows an interesting variation in backgrounds and motivations, in that almost all our French entrepreneurs came from public research institutes, whereas a large share of the Japanese entrepreneurs came from large pharmaceutical companies. This finding questions the universal nature of entrepreneurship in biopharmaceutical firms and invites consideration for a model of entrepreneurship that is socially embedded in a country's specific institutional and historical factors.Favorisée par les avancées du génie génétique, un nouveau type d'entreprises est apparue dans l'industrie pharmaceutique. Nouvelles entreprises de biotechnologie (CNB) sont des «institutions de transfert » pour accélérer la commercialisation de la science née à l'université sur le marché pharmaceutique et pour faciliter l'introduction technologique dans le développement de médicaments ou l'apparition des pistes thérapeutiques non encore explorées. Comme telles, elles ont soulevé un intérêt industriel et politique à travers le monde. Leur succès peuvent être dus aux environnements plus favorables que certains pays semblent offrir plus que d'autres. Les performances des pays en la matière sont habituellement comparés à leur disposition des ressources et des institutions favorables. Mais cet article prend une route alternative en examinant le côté entrepreneurial de la CNB comme un facteur majeur dans leur émergence. Biographies des entrepreneurs et de l'expérience de création d'entreprises ont été recueillies dans deux bio-clusters comparables en France (Evry) et le Japon (Kobe), avec les 11 japonais et français CNB spécialisées en développement de médicaments. Le résultat montre une variation intéressante dans ces deux pays; presque tous nos entrepreneurs français sont venus des instituts de recherche publique, tandis qu'une part importante des entrepreneurs japonais vient de grandes sociétés pharmaceutiques. Ce constat questionne sur le caractère universel de l'esprit d'entreprise dans les sociétés bio-pharmaceutiques et invite à considérer des modèles d'entrepreneuriat qui sont imprégnés, dans chaque pays, des facteurs institutionnels et historiques spécifiques

Mind the Gales:An attention-based view of startup investment arms

This dissertation takes the corporate perspective, and seeks to understand inconsistencies in decision making enacted by corporate venture capital (CVC) investment units. CVC units are often portrayed as rational instruments deployed to obtain corporate innovation and to achieve renewal goals, by gaining privileged access to external startups’ knowledge resources. However, the dissertation proposes a behavioral framework, based on the attention-based view, that demonstrates how the selective attention of CVC units subsequently affects the availability of particular organizational moves. This implies that certain issues and answers are (deliberately or non-deliberately) attended to, while others are ignored. Patterns of selective attention in conjunction with sequential decision-making processes signify that future decisions or organizational moves are highly dependent on the attentional structures of prior decisions. The first study of the dissertation explains why the observed variance in a CVC unit’s selective focus of attention (measured as variance in evaluation durations) results from the unit’s interpretation of a corporate firm’s renewal goals. The second study explains how a CVC unit’s investment behavior can slow down (measured as the number of investments), no matter how many prospective external opportunities are scouted through syndication networks. Finally, the third study explains how CVC units differ in their abilities to transfer and integrate external knowledge embedded in their CVC portfolios. Altogether, the dissertation highlights behavioral characteristics of corporate innovation, and in particular, how CVC units’ selective focus of attention is conditioned by social and emergent factors that in turn shape the particular set of opportunities that a corporate firm can use in pursuit of innovation and strategic renewal

Business Model Innovation For Potentially Disruptive Technologies: The Case Of Big Pharmaceutical Firms Accommodating Biotechnologies

Potenziell disruptive Technologien sind schwer zu vermarkten, weil sie mit Werten verbunden sind, die für etablierte Unternehmen neu sind. Ohne geeignete Geschäftsmodellinnovation gelingt es den etablierten Unternehmen nicht, neue, potenziell disruptive Technologien auf den Markt zu bringen. Die aufkeimende Literatur über disruptive Innovationen bietet nur begrenzte Empfehlungen zu spezifischen Geschäftsmodellelementen, die dazu dienen können, potenziell disruptive Technologien zu integrieren. Um diese Forschungslücke zu schließen, wird in dieser Arbeit untersucht, wie große Pharmaunternehmen Biotechnologien in die Gestaltung ihrer Geschäftsmodellinnovation einbezogen haben, um erfolgreiche Elemente der Geschäftsmodellgestaltung zu ermitteln. Es wird ein qualitativer Forschungsansatz gewählt, der aus drei Studien besteht. Zunächst werden nach einer systematischen Literaturrecherche zur Geschäftsmodellforschung in der pharmazeutischen Industrie 45 Arbeiten ausgewählt und qualitativ ausgewertet. Zweitens werden qualitative halbstrukturierte Interviews mit 16 Experten in großen Pharmaunternehmen geführt. Die Transkripte werden mit der Methode der Qualitativen Inhaltsanalyse ausgewertet. Schließlich wird eine Clusteranalyse durchgeführt, um den von allen digitalen Angeboten großer Pharmaunternehmen vorgeschlagenen und gelieferten Wert zu ermitteln. In dieser Arbeit werden erstmals zwei Geschäftsmodelle großer Pharmaunternehmen aus der Zeit vor und nach der Einführung der Biotechnologien beschrieben. In dieser Arbeit wird argumentiert, dass für die Anpassung an potenziell disruptive Technologien folgende Geschäftsmodellelemente empfohlen werden: Kollaborationsportfolios und digitale Servitisierung. Erstens sollten etablierte Unternehmen ein Portfolio von Kooperationsformaten entwickeln, indem sie die Breite der Partner (einschließlich der Wettbewerber) diversifizieren und alle Aktivitäten in ihrer Wertschöpfungskette abdecken. Zweitens sollten die etablierten Unternehmen den Wert, den sie anbieten, und die Art und Weise, wie sie diesen Wert für etablierte und neue Kundensegmente bereitstellen, innovativ gestalten, indem sie ihre Produkte mit ergänzenden Dienstleistungen bündeln, insbesondere mit solchen, die digital ermöglicht werden. Digitale Dienstleistungen dienen dazu, die Bedürfnisse der Kunden mit denen des Herstellers zu verknüpfen. Neben der Weiterentwicklung der Theorie über disruptive Innovationen können die empfohlenen Elemente des Geschäftsmodells von führenden mittelständischen Pharmaunternehmen (z. B. Fresenius oder Servier) und Unternehmen aus anderen Branchen direkt genutzt werden, um andere potenziell disruptive Technologien zu vermarkten. Diese Forschung unterstützt politische Entscheidungsträger bei der Entwicklung von Strategien zur Förderung der Kommerzialisierung potenziell disruptiver Innovationen in ihrem spezifischen Kontext.Potentially disruptive technologies are challenging to commercialize because they are associated with values new to established firms. Without fitting business model innovation, incumbent firms fail to bring new potentially disruptive technologies to the market. The burgeoning literature on disruptive innovation provides only limited recommendations on specific business model elements that can serve to accommodate potentially disruptive technologies. To close this research gap, this thesis explores how big pharmaceutical firms accommodated biotechnologies in the design of their business model innovation to discover successful business model design elements. A qualitative research approach consisting in three studies is adopted. First, following a systematic literature review on business model research in the pharmaceutical industry, 45 papers are selected and qualitatively analyzed. Second, qualitative semi-structured interviews are conducted with 16 experts in big pharmaceutical firms. The transcripts are analyzed using the qualitative content analysis method. Finally, a cluster analysis is conducted to identify value proposed and delivered by all digital offers of big pharmaceutical firms. This thesis is the first to describe two business model designs of big pharmaceutical firms from before and since the accommodation of biotechnologies. This research argues that business model designs recommended for the accommodation of potentially disruptive technologies are collaboration portfolios and digital servitization. First, established firms should devise a portfolio of collaboration formats by diversifying breadth of partners (including competitors), and by covering all activities in their value chain. Second, incumbent firms should innovate in the value they offer and how they deliver it to mainstream and new customer segments though bundling their products with complementary services, especially those that are digitally enabled. Digital services serve for back-coupling customers’ needs with the producer. Besides advancing theory on disruptive innovation, the recommended business model design elements can be directly used by top midsize pharmaceutical firms (e.g., Fresenius or Servier) and firms from other industries to commercialize other potentially disruptive technologies. This research supports policy makers in devising strategies for the promotion of the commercialization of potentially disruptive innovations in their specific contexts