Decoding the adaptability-rigidity puzzle: Evidence from pharmaceutical incumbents' pursuit of gene therapy and monoclonal antibodies

Academy of Management Journal

Volumn 58, Issue 4, 2015, Pages 1180-1207

  Kapoor, Rahul ^a   Klueter, Thomas ^b  

^a UNIVERSITY OF PENNSYLVANIA   (United States)

^b IESE BUSINESS SCHOOL   (Spain)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 84939496705     PISSN: 00014273     EISSN: None     Source Type: Journal    
DOI: 10.5465/amj.2013.0430     Document Type: Article

References (87)

1. Abernathy, W. J., & Clark, K. B. 1985. Innovation: Mapping the winds of creative destruction. Research Policy, 14: 3-22.
2. Adegbesan, J. A., & Higgins, M. J. 2011. The intra-alliance division of value created through collaboration. Strategic Management Journal, 32: 187-211.
3. Allison, P. D. 1999. Comparing logit and probit coefficients across groups. Sociological Methods & Research, 28: 186-208.
4. Anand, J., Oriani, R., & Vassolo, R. S. 2010. Alliance activity as a dynamic capability in the face of a discontinuous technological change. Organization Science, 21: 1213-1232.
5. Anderson, P., & Tushman, M. L. 1990. Technological discontinuities and dominant designs: A cyclical model of technological change. Administrative Science Quarterly, 35: 604-633.
6. Angrist, J. D., & Pischke, J.-S. 2008. Mostly harmless econometrics: An empiricist's companion. Princeton, NJ: Princeton University Press.
7. Arora, A., Fosfuri, A., & Gambardella, A. 2001. Markets for technology: The economics of innovation and corporate strategy. Cambridge, MA: MIT Press.
8. Arora, A., Fosfuri, A., & Rønde, T. 2013. Managing licensing in a market for technology. Management Science, 59: 1092-1106.
9. Bascle, G. 2008. Controlling for endogeneity with instrumental variables in strategic management research. Strategic Organization, 6: 285-327.
10. Brennan, T. A., & Wilson, J. M. 2014. The special case of gene therapy pricing. Nature Biotechnology, 32: 874-876.
11. Burgelman, R. A. 1994. Fading memories: A process theory of strategic business exit in dynamic environments. Administrative Science Quarterly, 39: 24-56.
12. Burgelman, R. A., & Sayles, L. R. 1988. Inside corporate innovation. New York: Free Press.
13. Cameron, A., & Trivedi, P. 2013. Regression analysis of count data. Cambridge, UK: Cambridge University Press.
14. Chandy, R., Hopstaken, B., Narasimhan, O., & Prabhu, J. 2006. From invention to innovation: Conversion ability in product development. Journal of Marketing Research, 43: 494-508.
15. Chaudhuri, S., & Tabrizi, B. 1999. Capturing the real value in high-tech acquisitions. Harvard Business Review, 77: 123-130.
16. Chesbrough, H. 2001. Assembling the elephant: A review of empirical studies on the impact of technical change upon incumbent firms. In R. A. Burgelman (Ed.), Comparative studies of technological evolution: 1-36. Bingley, UK: Emerald Group Publishing Limited.
17. Chesbrough, H., & Rosenbloom, R. S. 2002. The role of the business model in capturing value from innovation: Evidence from Xerox Corporation's technology spinoff companies. Industrial and Corporate Change, 11: 529-555.
18. Christensen, C. M. 1997. The innovator's dilemma: When new technologies cause great firms to fail. Boston, MA: Harvard Business School Press.
19. Christensen, C. M. 2006. The ongoing process of building a theory of disruption. Journal of Product Innovation Management, 23: 39-55.
20. Christensen, C. M., & Bower, J. L. 1996. Customer power, strategic investment, and the failure of leading firms. Strategic Management Journal, 17: 197-218.
21. Christensen, C. M., & Raynor, M. 2003. The innovator's solution. Boston, MA: Harvard Business School Press.
22. Christensen, C. M., & Rosenbloom, R. S. 1995. Explaining the attacker's advantage: Technological paradigms, organizational dynamics, and the value network. Research Policy, 24: 233-257.
23. Cockburn, I. M., & Henderson, R. M. 1998. Absorptive capacity, coauthoring behavior, and the organization of research in drug discovery. The Journal of Industrial Economics, 46: 157-182.
24. Cohen, W. M., & Levinthal, D. A. 1990. Absorptive capacity: a new perspective on learning and innovation. Administrative Science Quarterly, 35: 128-152.
25. Cooper, A. C., & Schendel, D. 1976. Strategic responses to technological threats. Business Horizons, 19: 61-69.
26. Creswell, J. W., & Clark, V. L. P. 2011. Designing and conducting mixed methods research (2nd ed.). Thousand Oaks, CA: SAGE Publications.
27. Dechenaux, E., Thursby, M., & Thursby, J. 2009. Shirking, sharing risk and shelving: The role of university license contracts. International Journal of Industrial Organization, 27: 80-91.
28. Dosi, G. 1982. Technological paradigms and technological trajectories. Research Policy, 11: 147-162.
29. Dougherty, D. 1992. Interpretive barriers to successful product innovation in large firms. Organization Science, 3: 179-202.
30. DuBois, S. 2012. 5 science breakthroughs in 2012. Fortune [Electronic version], December 31, 2012. http://fortune.com/2012/12/31/5-science-breakthroughs-in-2012/(accessed March 15, 2013).
31. Eggers, J. P., & Kaplan, S. 2009. Cognition and renewal: Comparing CEO and organizational effects on incumbent adaptation to technical change. Organization Science, 20: 461-477.
32. Foster, R. N. 1986. Innovation: The attacker's advantage. New York: Summit Books.
33. Freeman, C., & Soete, L. 1997. The economics of industrial innovation (3rd ed.). London: Pinter Press.
34. Furr, N. R., Cavarretta, F., & Garg, S. 2012. Who changes course? The role of domain knowledge and novel framing in making technology changes. Strategic Entrepreneurship Journal, 6: 236-256.
35. Gambardella, A. 1992. Competitive advantages from inhouse scientific research: The US pharmaceutical industry in the 1980s. Research Policy, 21: 391-407.
36. Gilbert, C. G. 2005. Unbundling the structure of inertia: Resource versus routine rigidity. Academy of Management Journal, 48: 741-763.
37. Giovannetti, G., & Morrison, S. 2000. Convergence: The biotechnology industry report (Millennium ed.). New York: Ernst & Young.
38. Girotra, K., Terwiesch, C., & Ulrich, K. T. 2007. Valuing R&D projects in a portfolio: Evidence from the pharmaceutical industry. Management Science, 53: 1452-1466.
39. Graebner, M. E., Eisenhardt, K. M., & Roundy, P. T. 2010. Success and failure in technology acquisitions: Lessons for buyers and sellers. The Academy of Management Perspectives, 24: 73-92.
40. Greve, H. R. 2003. Organizational learning from performance feedback: A behavioral perspective on innovation and change. Cambridge, UK: Cambridge University Press.
41. Griliches, Z. 1990. Patent statistics as economic indicators: a survey. Journal of Economic Literature, 28: 1661-1707.
42. Hagedoorn, J. 2002. Inter-firm R&D partnerships: An overview of major trends and patterns since 1960. Research Policy, 31: 477-492.
43. Hansen, M. T., & Birkinshaw, J. 2007. The innovation value chain. Harvard Business Review, 85: 121-130.
44. Henderson, R. 1993. Underinvestment and incompetence as responses to radical innovation: Evidence from the photolithographic alignment equipment industry. The RAND Journal of Economics, 24: 248-270.
45. Henderson, R., & Clark, K. B. 1990. Architectural innovation: The reconfiguration of existing product technologies and the failures of established firms. Administrative Science Quarterly, 35: 9-30.
46. Hess, A., & Rothaermel, F. 2011. When are assets complementary? Star scientists, strategic alliances, and innovation in the pharmaceutical industry. Strategic Management Journal, 32: 895-909.
47. Hill, C., & Rothaermel, F. 2003. The performance of incumbent firms in the face of radical technological innovation. Academy of Management Review, 28: 257-274.
48. Hoetker, G. 2007. The use of logit and probit models in strategic management research: Critical issues. Strategic Management Journal, 28: 331-343.
49. Kale, P., & Singh, H. 2009. Managing strategic alliances: What do we know now, and where do we go from here? The Academy of Management Perspectives, 23: 45-62.
50. Kaplan, S. 2008. Cognition, capabilities, and incentives: Assessing firm response to the fiber-optic revolution. Academy of Management Journal, 51: 672-695.
51. Kaplan, S., & Henderson, R. 2005. Inertia and incentives: Bridging organizational economics and organizational theory. Organization Science, 16: 509-521.
52. Kaplan, S., Murray, F., & Henderson, R. 2003. Discontinuities and senior management: Assessing the role of recognition in pharmaceutical firm response to biotechnology. Industrial and Corporate Change, 12: 203-233.
53. Katz, R., & Allen, T. J. 1984. Organizational issues in the introduction of new technologies. Cambridge, MA: Alfred P. Sloan School of Management, Massachusetts Institute of Technology.
54. Koehn, F. E., & Carter, G. T. 2009. Rediscovering natural products as a source of new drugs. Discovery Medicine, 5: 159-164.
55. Leonard-Barton, D. 1992. Core capabilities and core rigidities: A paradox in managing new product development. Strategic Management Journal, 13: 111-125.
56. Leone, M. I., & Reichstein, T. 2012. Licensing-in fosters rapid invention! The effect of the grant-back clause and technological unfamiliarity. Strategic Management Journal, 33: 965-985.
57. Lim, K. 2004. The relationship between research and innovation in the semiconductor and pharmaceutical industries (1981-1997). Research Policy, 33: 287-321.
58. Macher, J. T., & Boerner, C. 2012. Technological development at the boundaries of the firm: A knowledge-based examination in drug development. Strategic Management Journal, 33: 1016-1036.
59. Markman, G. D., Gianiodis, P. T., Phan, P. H., & Balkin, D. B. 2005. Innovation speed: Transferring university technology to market. Research Policy, 34: 1058-1075.
60. Miller, D. W., & Feldman, S. R. 2006. Cost-effectiveness of moderate-to-severe psoriasis treatment. Expert Opinion on Pharmacotherapy, 7: 157-167.
61. Narin, F., Noma, E., & Perry, R. 1987. Patents as indicators of corporate technological strength. Research Policy, 16: 143-155.
62. Nelson, R., & Winter, S. 1982. An evolutionary theory of economic change. Cambridge, MA: Belknap Press.
63. Neter, J., Wasserman, W., & Kutner, M. H. 1996. Applied linear statistical models (4th ed.) Chicago, IL: Irwin.
64. Nicholls-Nixon, C. L., & Woo, C. Y. 2003. Technology sourcing and output of established firms in a regime of encompassing technological change. Strategic Management Journal, 24: 651-666.
65. Pisano, G. P. 1990. The R&D boundaries of the firm: An empirical analysis. Administrative Science Quarterly, 35: 153-176.
66. Pisano, G. P. 2006. The science business: The promise, the reality, and the future of biotech. Boston, MA: Harvard Business School Press.
67. Polidoro, F., & Toh, P. K. 2011. Letting rivals come close or warding them off? The effects of substitution threat on imitation deterrence. Academy of Management Journal, 54: 369-392.
68. Puranam, P., Singh, H., & Chaudhuri, S. 2009. Integrating acquired capabilities: When structural integration is (un)necessary. Organization Science, 20: 313-328.
69. Puranam, P., Singh, H., & Zollo, M. 2006. Organizing for innovation: Managing the coordination-integration dilemma in technology acquisitions. Academy of Management Journal, 49: 263-280.
70. Ranft, A. L., & Lord, M. D. 2002. Acquiring new technologies and capabilities: A grounded model of acquisition implementation. Organization Science, 13: 420-441.
71. Roper, S., Du, J., & Love, J. H. 2008. Modelling the innovation value chain. Research Policy, 37: 961-977.
72. Rosenbloom, R. S. 2000. Leadership, capabilities, and technological change: The transformation of NCR in the electronic era. Strategic Management Journal, 21: 1083-1103.
73. Rothaermel, F. T. 2001. Incumbent's advantage through exploiting complementary assets via interfirm cooperation. Strategic Management Journal, 22: 687-699.
74. Rydzewski, R. M. 2008. Real world drug discovery: A chemist's guide to biotech and pharmaceutical research. Amsterdam: Elsevier Science.
75. Schumpeter, J. 1934. The theory of economic development: An inquiry into profits, capital, credit, interest, and the business cycle. Cambridge, MA: Harvard University Press.
76. Schweizer, L. 2005. Organizational integration of acquired biotechnology companies into pharmaceutical companies: The need for a hybrid approach. Academy of Management Journal, 48: 1051-1074.
77. Sosa, M. L. 2014. Corporate Structure, Indirect Bankruptcy Costs, and the Advantage of De Novo Firms: The Case of Gene Therapy Research. Organization Science, 25: 850-867.
78. Steensma, H. K., & Corley, K. G. 2000. On the performance of technology-sourcing partnerships: The interaction between partner interdependence and technology attributes. Academy of Management Journal, 43: 1045-1067.
79. Sull, D. N., Tedlow, R. S., & Rosenbloom, R. S. 1997. Managerial commitments and technological change in the U.S. tire industry. Industrial and Corporate Change, 6: 461-500.
80. Taylor, A., & Helfat, C. E. 2009. Organizational linkages for surviving technological change: Complementary assets, middle management, and ambidexterity. Organization Science, 20: 718-739.
81. Train, K. E. 1998. Recreation demand models with taste differences over people. Land Economics, 74: 230-239.
82. Tripsas, M. 1997. Unraveling the process of creative destruction: Complementary assets and incumbent survival in the typesetter industry. StrategicManagement Journal, 18(Summer Special Issue): 119-142.
83. Tripsas, M., & Gavetti, G. 2000. Capabilities, cognition and inertia: Evidence from digital imaging. Strategic Management Journal, 21: 1147-1161.
84. Tushman, M. L., & Anderson, P. 1986. Technological discontinuities and organizational environments. Administrative Science Quarterly, 31: 436-465.
85. Utterback, J. M. 1994. Mastering the dynamics of innovation: How companies can seize opportunities in the face of technological change. Boston, MA: Harvard Business School Press.
86. Wilson, J. M. 2012. It's time for gene therapy to get disruptive! Human Gene Therapy, 23: 1-3.
87. Wooldridge, J. M. 2002. Econometric analysis of cross section and panel data. Cambridge, MA: MIT Press.