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

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  • Sabatier, Valerie
  • Craig-Kennard, Adrienne
  • Mangematin, Vincent

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.

Suggested Citation

  • Sabatier, Valerie & Craig-Kennard, Adrienne & Mangematin, Vincent, 2012. "When technological discontinuities and disruptive business models challenge dominant industry logics: Insights from the drugs industry," Technological Forecasting and Social Change, Elsevier, vol. 79(5), pages 949-962.
  • Handle: RePEc:eee:tefoso:v:79:y:2012:i:5:p:949-962
    DOI: 10.1016/j.techfore.2011.12.007
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    Citations

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    Cited by:

    1. Chammassian, Raffi Gabriel & Sabatier, Valerie, 2020. "The role of costs in business model design for early-stage technology startups," Technological Forecasting and Social Change, Elsevier, vol. 157(C).
    2. Wu, Qiang & He, Qile, 2020. "DIY Laboratories and business innovation ecosystems: The case of pharmaceutical industry," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    3. Ernkvist, Mirko, 2015. "The double knot of technology and business-model innovation in the era of ferment of digital exchanges: The case of OM, a pioneer in electronic options exchanges," Technological Forecasting and Social Change, Elsevier, vol. 99(C), pages 285-299.
    4. Vecchiato, Riccardo, 2017. "Disruptive innovation, managerial cognition, and technology competition outcomes," Technological Forecasting and Social Change, Elsevier, vol. 116(C), pages 116-128.
    5. Qingfeng Tian & Shuo Zhang & Huimin Yu & Guangming Cao, 2019. "Exploring the Factors Influencing Business Model Innovation Using Grounded Theory: The Case of a Chinese High-End Equipment Manufacturer," Sustainability, MDPI, vol. 11(5), pages 1-16, March.
    6. Isabelle Leroux & Paul Muller & Béatrice Plottu & Caroline Widehem, 2014. "Evolution of business models in French ?Pôles de compétitivité?: the role of intermediaries in horticultural varietal creation," ERSA conference papers ersa14p693, European Regional Science Association.
    7. Laurell, Christofer & Sandström, Christian, 2018. "Comparing coverage of disruptive change in social and traditional media: Evidence from the sharing economy," Technological Forecasting and Social Change, Elsevier, vol. 129(C), pages 339-344.
    8. Gilsing, Victor A. & Cloodt, Myriam & Bertrand–Cloodt, Danielle, 2016. "What makes you more central? Antecedents of changes in betweenness-centrality in technology-based alliance networks," Technological Forecasting and Social Change, Elsevier, vol. 111(C), pages 209-221.
    9. Belussi, Fiorenza & Orsi, Luigi & Savarese, Maria, 2019. "Mapping Business Model Research: A Document Bibliometric Analysis," Scandinavian Journal of Management, Elsevier, vol. 35(3).
    10. Øiestad, Sara & Bugge, Markus M., 2014. "Digitisation of publishing: Exploration based on existing business models," Technological Forecasting and Social Change, Elsevier, vol. 83(C), pages 54-65.
    11. 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.
    12. Pronker, Esther & Weenen, Tamar & Commandeur, Harry & Claassen, E. & Osterhaus, A.D.M.E., 2015. "Scratching the surface: Exploratory analysis of key opinion leaders on rate limiting factors in novel adjuvanted-vaccine development," Technological Forecasting and Social Change, Elsevier, vol. 90(PB), pages 420-432.
    13. Emmanuel Coblence & Valérie Sabatier, 2014. "Articulating Growth and Cultural Innovation in Art Museums : The Louvre's Business Model Revision," Grenoble Ecole de Management (Post-Print) hal-01346974, HAL.
    14. Rémi Beulque & Franck Aggeri, 2015. "Circular economy at the glance of business models - learnings from automotive end-of-life - XXIVth International Conference on Strategic Management [L’économie circulaire au prisme des business mod," Post-Print hal-01168201, HAL.
    15. Betz, Ulrich A.K. & Betz, Frederick & Kim, Rachel & Monks, Brendan & Phillips, Fred, 2019. "Surveying the future of science, technology and business – A 35 year perspective," Technological Forecasting and Social Change, Elsevier, vol. 144(C), pages 137-147.
    16. Jin, Byoungho Ellie & Shin, Daeun Chloe, 2020. "Changing the game to compete: Innovations in the fashion retail industry from the disruptive business model," Business Horizons, Elsevier, vol. 63(3), pages 301-311.
    17. Lauto, Giancarlo & Valentin, Finn, 2016. "The knowledge production model of the New Sciences: The case of Translational Medicine," Technological Forecasting and Social Change, Elsevier, vol. 111(C), pages 12-21.
    18. Zahoor, Nadia & Al-Tabbaa, Omar, 2020. "Inter-organizational collaboration and SMEs’ innovation: A systematic review and future research directions," Scandinavian Journal of Management, Elsevier, vol. 36(2).
    19. Hafsi, Taïeb & Hu, Hao, 2016. "Sectoral innovation through competing logics: The case of antidepressants in traditional Chinese medicine," Technological Forecasting and Social Change, Elsevier, vol. 107(C), pages 80-89.
    20. Kilkki, Kalevi & Mäntylä, Martti & Karhu, Kimmo & Hämmäinen, Heikki & Ailisto, Heikki, 2018. "A disruption framework," Technological Forecasting and Social Change, Elsevier, vol. 129(C), pages 275-284.
    21. Müller, Julian Marius & Buliga, Oana & Voigt, Kai-Ingo, 2018. "Fortune favors the prepared: How SMEs approach business model innovations in Industry 4.0," Technological Forecasting and Social Change, Elsevier, vol. 132(C), pages 2-17.
    22. Emmanuel Coblence & Valérie Sabatier, 2014. "Articulating Growth and Cultural Innovation in Art Museums : The Louvre's Business Model Revision," Post-Print hal-01346974, HAL.
    23. Melanie Bryant & Vaughan Higgins, 2019. "Managing the grand challenge of biological threats to food production: The importance of institutional logics for managing Australian biosecurity," Australian Journal of Management, Australian School of Business, vol. 44(4), pages 534-550, November.
    24. von Delft, Stephan & Zhao, Yang, 2021. "Business models in process industries: Emerging trends and future research," Technovation, Elsevier, vol. 105(C).
    25. Rayna, Thierry & Striukova, Ludmila, 2016. "From rapid prototyping to home fabrication: How 3D printing is changing business model innovation," Technological Forecasting and Social Change, Elsevier, vol. 102(C), pages 214-224.

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