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Strategic groups in the biopharmaceutical industry: Implications for performance
Erden, Zeynep von Krogh, Georg Nytorp, Cecilia Hultberg, Marcus
Erden, Zeynep
von Krogh, Georg
Nytorp, Cecilia
Hultberg, Marcus
Citations
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Publication Type
Journal article with impact factor
Editor
Supervisor
Publication Year
2009
Journal
Drug Discovery Today
Book
Publication Volume
14
Publication Issue
15-16
Publication Begin page
726
Publication End page
730
Publication NUmber of pages
Collections
Abstract
The biopharmaceutical industry is characterized by intense competition, high uncertainty, and strong dependence on scientific knowledge. We show that in order to succeed in this industry, firms need to be positioned along three strategic dimensions: the level of inter-firm R&D partnering, the level of diversification, and the size of the firm. Prior research has revealed that a firm's membership in so-called ‘strategic groups’ impacts strongly on its performance. This study analyzes strategic groups in the biopharmaceutical industry along the strategic dimensions listed. The performance of the groups differs significantly. The best performing groups are the ones that consist of large firms with a high level of in-house diversification across therapeutic areas and the medium-sized firms that pursue partnership with other companies.