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When technological discontinuities and disruptive business models challenge dominant industry logics: insights from the drugs industry

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Author Info

  • Valérie Sabatier

    ()
    (MTS - Management Technologique et Strategique - Grenoble École de Management (GEM), GAEL - Economie Appliquée de Grenoble - Institut national de la recherche agronomique (INRA) : UR1215 - Université Pierre-Mendès-France - Grenoble II)

  • Adrienne Kennard

    ()
    (Genostar - Genostar)

  • Vincent Mangematin

    ()
    (MTS - Management Technologique et Strategique - Grenoble École de Management (GEM))

Abstract

An industry's dominant logic is the general scheme of value creation and capture shared by its actors. In high technology fields, technological discontinuities are not enough to disrupt an industry's dominant logic. Identifying the factors that might trigger change in that logic can help companies develop strategies to enable them to capture greater value from their innovations by disrupting that logic. Based on analyzing the changes that biotechnologies and bioinformatics have brought to the drug industry, we identify and characterize three triggers of change that can create disruptive business models. We suggest that, in mature industries experiencing strong discontinuities and high technological uncertainty, entrants' business models initially tend to fit into the industry's established dominant logic and its value chains remain unchanged. But as new technologies evolve and uncertainty decreases, disruptive business models emerge, challenging dominant industry logics and reshaping established value chains.

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File URL: http://hal.grenoble-em.com/docs/00/65/87/27/PDF/Business_Models_Drug_Industry.pdf
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Bibliographic Info

Paper provided by HAL in its series Grenoble Ecole de Management (Post-Print) with number hal-00658727.

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Date of creation: 2012
Date of revision:
Publication status: Published, Technological Forecasting and Social Change, 2012, 79, 5, 949-962
Handle: RePEc:hal:gemptp:hal-00658727

Note: View the original document on HAL open archive server: http://hal.grenoble-em.com/hal-00658727
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Web page: http://hal.archives-ouvertes.fr/

Related research

Keywords: dominant logic; business model; industry life cycle; drug industry; technological discontinuities.;

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Cited by:
  1. Lehoux, P. & Daudelin, G. & Williams-Jones, B. & Denis, J.-L. & Longo, C., 2014. "How do business model and health technology design influence each other? Insights from a longitudinal case study of three academic spin-offs," Research Policy, Elsevier, vol. 43(6), pages 1025-1038.

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