Key influencing factors for the success of external innovation strategies in the biotechnology industry

PurposeNumerous biotechnology and pharmaceutical firms have undergone considerable changes and adapted to the challenge of developing sustainable products and services. However, few studies have explored the factors that contribute to the success of external innovation and value co-creation strategies adopted by biotechnology and pharmaceutical firms. The purpose of this study is to examine how biotechnology and pharmaceutical industries use value co-creation strategies to obtain external resources. Design/methodology/approachThis study developed a conceptual framework based on the relevant literature. The study applied a resource-based approach, dynamic capability theory and a qualitative multiple-case study design to investigate several research questions; semi-structured interviews were conducted with representatives from 11 biotechnology/pharmaceutical firms in Taiwan, and the data extracted from the interview content were axially coded. FindingsThis study revealed that factors such as dynamic marketing capabilities and process optimization contributed to the success of the aforementioned strategies; several propositions were also developed on the basis of the literature review and coded data, thereby providing insights regarding the relative efficacy and propriety of various external innovation and value co-creation strategies and models in various situations and contexts. Firms and technology providers might enter a technology licensing agreement, establish a joint venture company; participate in a merger/acquisition depending on their size, research and development capabilities; or goals and time- and cost-related factors. Originality/valueThe main original contributions of this study are the proposed conceptual framework and the insights provided regarding the relative efficacy and propriety of different external innovation and value co-creation strategies and models in different situations and contexts.