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A research note on market creation in the pharmaceutical industry

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  • Darroch, Jenny
  • Miles, Morgan P.

Abstract

When a firm launches a market-creating innovation, it launches a new product for which there are no close product substitutes. Thus, the new product causes a shift in the existing product-market structure of an industry. This paper reports on the findings of the analysis of 51 large pharmaceutical firms and their market-creating activities. The study suggests that market-creating firms have capabilities in both R&D and marketing. Furthermore, market-creating firms enjoy stronger efficiencies, manage costs better and make more profitable use of their assets.

Suggested Citation

  • Darroch, Jenny & Miles, Morgan P., 2011. "A research note on market creation in the pharmaceutical industry," Journal of Business Research, Elsevier, vol. 64(7), pages 723-727, July.
    • Handle: RePEc:eee:jbrese:v:64:y:2011:i:7:p:723-727
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    References listed on IDEAS

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    Cited by:

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    2. Paswan, Audhesh K. & Hirunyawipada, Tanawat & Iyer, Pramod, 2017. "Opportunism, governance structure and relational norms: An interactive perspective," Journal of Business Research, Elsevier, vol. 77(C), pages 131-139.
    3. Nikolopoulos, Konstantinos & Buxton, Samantha & Khammash, Marwan & Stern, Philip, 2016. "Forecasting branded and generic pharmaceuticals," International Journal of Forecasting, Elsevier, vol. 32(2), pages 344-357.
    4. Jenson, Ian & Doyle, Richard & Miles, Morgan P., 2020. "An entrepreneurial marketing process perspective of the role of intermediaries in producing innovation outcomes," Journal of Business Research, Elsevier, vol. 112(C), pages 291-299.
    5. S. Buxton & Kostas Nikolopoulos & M. Khammash & P. Stern, 2015. "Modelling and Forecasting Branded and Generic Pharmaceutical Life Cycles: Assessment of the Number of Dispensed Units," Working Papers 15004, Bangor Business School, Prifysgol Bangor University (Cymru / Wales).
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    7. Morgan P. Miles & Mark Morrison, 2020. "An effectual leadership perspective for developing rural entrepreneurial ecosystems," Small Business Economics, Springer, vol. 54(4), pages 933-949, April.
    8. Sprong, Niels & Driessen, Paul H. & Hillebrand, Bas & Molner, Sven, 2021. "Market innovation: A literature review and new research directions," Journal of Business Research, Elsevier, vol. 123(C), pages 450-462.
    9. Ng, Irene C.L. & Wakenshaw, Susan Y.L., 2017. "The Internet-of-Things: Review and research directions," International Journal of Research in Marketing, Elsevier, vol. 34(1), pages 3-21.

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