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

Author

Listed:
  • Valérie Sabatier

    () (Global Health - GAEL - Laboratoire d'Economie Appliquée de Grenoble - UPMF - Université Pierre Mendès France - Grenoble 2 - INRA - Institut National de la Recherche Agronomique - MTS - Management Technologique et Strategique - Grenoble École de Management (GEM))

  • Adrienne Kennard

    () (Genostar - Genostar)

  • Vincent Mangematin

    () (Global Health - 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.

Suggested Citation

  • Valérie Sabatier & Adrienne Kennard & Vincent Mangematin, 2012. "When technological discontinuities and disruptive business models challenge dominant industry logics: insights from the drugs industry," Grenoble Ecole de Management (Post-Print) hal-00658727, HAL.
  • Handle: RePEc:hal:gemptp:hal-00658727
    DOI: 10.1016/j.techfore.2011.12.007
    Note: View the original document on HAL open archive server: http://hal.grenoble-em.com/hal-00658727
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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.
    2. 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.
    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. 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.
    5. Vecchiato, Riccardo, 2017. "Disruptive innovation, managerial cognition, and technology competition outcomes," Technological Forecasting and Social Change, Elsevier, vol. 116(C), pages 116-128.
    6. 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.
    7. 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.
    8. repec:eee:tefoso:v:129:y:2018:i:c:p:339-344 is not listed on IDEAS
    9. 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.
    10. 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.
    11. 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.
    12. repec:eee:tefoso:v:129:y:2018:i:c:p:275-284 is not listed on IDEAS
    13. repec:eee:tefoso:v:132:y:2018:i:c:p:2-17 is not listed on IDEAS
    14. 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.
    15. 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.

    More about this item

    Keywords

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

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