Diffusing knowledge-based core competencies for leveraging innovation strategies: Modelling outsourcing to knowledge process organizations (KPOs) in pharmaceutical networks
As pharmaceutical firms try to market their products and reduce costs, vertically integrated structures hamper innovation processes. Yet, pharmaceutical firms must innovate to compete. Outsourcing knowledge intensive activities to knowledge process organizations (KPOs) serves to reduce innovation pr...
| Main Authors: | , , , |
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| Format: | Journal Article |
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Elsevier Inc.
2009
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| Subjects: | |
| Online Access: | http://hdl.handle.net/20.500.11937/16493 |
| _version_ | 1848749192507293696 |
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| author | Gupta, S. Woodside, Arch Dubelaar, C. Bradmore, D. |
| author_facet | Gupta, S. Woodside, Arch Dubelaar, C. Bradmore, D. |
| author_sort | Gupta, S. |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | As pharmaceutical firms try to market their products and reduce costs, vertically integrated structures hamper innovation processes. Yet, pharmaceutical firms must innovate to compete. Outsourcing knowledge intensive activities to knowledge process organizations (KPOs) serves to reduce innovation process obstacles. Grounded in diffusion theory and strategic management literature, this conceptual paper explores four interrelated strategic concepts: core competencies, economies of scale and scope, knowledge sharing, and learning. This paper claims that (a) accumulated core competencies of multinational pharmaceutical companies (MPCs) erode over time and these companies become dependent on KPOs (b) MPCs must understand how KPOs manage core competencies (c) economies of scope benefit KPOs enabling them to sustain competitive advantages for their MPC partners, meanwhile the benefits from economies of both scale and scope shift from MPCs to KPOs (d) KPOs need to monitor their rate of learning to remain competitive. The paper identifies implications for industrial managers and directions for future research. |
| first_indexed | 2025-11-14T07:17:02Z |
| format | Journal Article |
| id | curtin-20.500.11937-16493 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T07:17:02Z |
| publishDate | 2009 |
| publisher | Elsevier Inc. |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-164932017-09-13T15:44:33Z Diffusing knowledge-based core competencies for leveraging innovation strategies: Modelling outsourcing to knowledge process organizations (KPOs) in pharmaceutical networks Gupta, S. Woodside, Arch Dubelaar, C. Bradmore, D. Pharmaceutical Outsourcing Networks Knowledge Industry As pharmaceutical firms try to market their products and reduce costs, vertically integrated structures hamper innovation processes. Yet, pharmaceutical firms must innovate to compete. Outsourcing knowledge intensive activities to knowledge process organizations (KPOs) serves to reduce innovation process obstacles. Grounded in diffusion theory and strategic management literature, this conceptual paper explores four interrelated strategic concepts: core competencies, economies of scale and scope, knowledge sharing, and learning. This paper claims that (a) accumulated core competencies of multinational pharmaceutical companies (MPCs) erode over time and these companies become dependent on KPOs (b) MPCs must understand how KPOs manage core competencies (c) economies of scope benefit KPOs enabling them to sustain competitive advantages for their MPC partners, meanwhile the benefits from economies of both scale and scope shift from MPCs to KPOs (d) KPOs need to monitor their rate of learning to remain competitive. The paper identifies implications for industrial managers and directions for future research. 2009 Journal Article http://hdl.handle.net/20.500.11937/16493 10.1016/j.indmarman.2008.12.010 Elsevier Inc. restricted |
| spellingShingle | Pharmaceutical Outsourcing Networks Knowledge Industry Gupta, S. Woodside, Arch Dubelaar, C. Bradmore, D. Diffusing knowledge-based core competencies for leveraging innovation strategies: Modelling outsourcing to knowledge process organizations (KPOs) in pharmaceutical networks |
| title | Diffusing knowledge-based core competencies for leveraging innovation strategies: Modelling outsourcing to knowledge process organizations (KPOs) in pharmaceutical networks |
| title_full | Diffusing knowledge-based core competencies for leveraging innovation strategies: Modelling outsourcing to knowledge process organizations (KPOs) in pharmaceutical networks |
| title_fullStr | Diffusing knowledge-based core competencies for leveraging innovation strategies: Modelling outsourcing to knowledge process organizations (KPOs) in pharmaceutical networks |
| title_full_unstemmed | Diffusing knowledge-based core competencies for leveraging innovation strategies: Modelling outsourcing to knowledge process organizations (KPOs) in pharmaceutical networks |
| title_short | Diffusing knowledge-based core competencies for leveraging innovation strategies: Modelling outsourcing to knowledge process organizations (KPOs) in pharmaceutical networks |
| title_sort | diffusing knowledge-based core competencies for leveraging innovation strategies: modelling outsourcing to knowledge process organizations (kpos) in pharmaceutical networks |
| topic | Pharmaceutical Outsourcing Networks Knowledge Industry |
| url | http://hdl.handle.net/20.500.11937/16493 |