Inbound open innovation for pharmaceutical markets: a case study of an anti-diabetic drug in-licensing decision

2016 ◽  
Vol 31 (2) ◽  
pp. 205-218 ◽  
Author(s):  
Allan Ya-Huan Wu ◽  
Victoria Janine Little ◽  
Brian Low

Purpose – This paper aims to increase understanding of how firms can more effectively identify valuable and profitable innovations in the pharmaceutical industry and to identify the issues and challenges posed by current managerial decision-making practices. Design/methodology/approach – A case study of a single project is presented: a drug in-licensing decision made by a team of three managers in a large Australian pharmaceutical firm. Using participant-observation, interviews and archival analysis, the authors followed the managers as they identified and evaluated 122 late-stage anti-diabetic drug variants for further development. Findings – The managers used decision heuristics to arrive at a short list of three drugs from a choice set of 122. While the process was ostensibly rational and systematic, there was evidence of data quality issues, misleading mental models and cognitive bias. The authors concluded a high probability of accepting a poor candidate or rejecting a stronger candidate (i.e. making Type I and II errors). Research limitations/implications – This paper focuses on initial market and technology evaluation stage only (i.e. not commercialization) and is a single case study design; therefore, care should be taken in generalizing to other decisions or other contexts. This paper highlights the need for further research integrating organizational decision-making and open innovation from a multi-disciplinary perspective. Practical/implications – This paper raises awareness of potential decision-making pitfalls and includes a detailed audit framework to support improved managerial decision processes and double rather than single loop learning. Social/implications – The findings support better decision-making and therefore supports higher quality drug selection and development, leading to improved population health outcomes. Originality/value – Multi-disciplinary, draws attention of marketing and new product development scholars to open innovation research. It adds to knowledge about open innovation practices at the project level. It also provides an extended model of market opportunity analysis for high technology markets.

2019 ◽  
Vol 32 (5) ◽  
pp. 496-516 ◽  
Author(s):  
Wissal Ben Arfi ◽  
Rickard Enström ◽  
Jean Michel Sahut ◽  
Lubica Hikkerova

Purpose The purpose of this paper is to contribute to the theoretical background on how organizational change (OC) enhances open innovation (OI) processes and enables a company to reach performance results through implementing knowledge sharing platforms (KSPs). The authors aim to better understand and investigate how the changes introduced by the implementation of KSPs impact the OC and facilitate the OI process. Design/methodology/approach In this paper, an exploratory longitudinal single case study based on a variety of data sources is used: participant observations, focus group discussions and semi-structured interviews with the KSP members and top managers of a Tunisian SME operating in the dairy products sector. The open-ended responses were subsequently exposed to thematic discourse analysis. Findings The case study findings deeply explore and investigate a company’s experience in implementing OCs when using a joint-venture alliance with a French leader to develop OI. Central to this exhibit is the nature and magnitude of the knowledge sharing between the parties in the OI process, and the significant impact it had on the consumers’ reception of the new products. The outcomes show that due to the sharing of external research and development skills, the creation of the KSP has been an incentive for significant changes and customer targeting and for promoting internal absorptive capacity, minimizing complexity, uncertainty and risks and reaching performance results. Originality/value This paper provides a deep understanding of the new product development process and offers a holistic approach with respect to KSP practices. The significant impact on the consumers’ first response and the subsequent adaption of an industrially produced cheese as a subsidiary product to an existing artisan quality product are examined in this study. Examining the implementation of an OI process, this research is one of the few studies revealing the shortcomings of a former process and a subsequent adaption of a newly successful one that targets the consumers in a MENA country.


2018 ◽  
Vol 11 (4) ◽  
pp. 1066-1085 ◽  
Author(s):  
Anne-Cathrine Thore Olsson ◽  
Ulf Johannesson ◽  
Roger Schweizer

PurposeEmphasizing the importance of product cost deviation; the purpose of this paper is to contribute to the new product development (NPD) literature and research on decision making by discussing: How are decisions related to product cost deviations made during a product development project?Design/methodology/approachAn in-depth single case study approach studying the decision-making process of Volvo Cars Cooperation during a car development project is applied.FindingsThe paper suggests that factors influencing how decisions related to cost deviations are made during a NPD are not limited to the classic trade-offs among time, cost and scope, but include managers’ complex cause-and-effect analysis under the influence of values, behaviors and norms. Furthermore, the context is not limited to NPD projects; rather the frame for the decisions and its influencers is at least as wide as the corporate context.Research limitations/implicationsThe common limitations of a single case study apply.Practical implicationsThe study emphasizes the importance of clearly defined targets during a NPD project that need to well communicated, acknowledged and understood by all involved to serve as true business levers. A poor target is likely better than no target. Furthermore, lack of overview or responsibility for the success of the projects, increase the risk for sub-optimization and silo thinking.Originality/valueThe study is pioneering by highlighting the importance of and explaining the implications of decision making related to cost deviations during a NPD project.


2008 ◽  
Vol 25 (9) ◽  
pp. 899-912 ◽  
Author(s):  
André Segismundo ◽  
Paulo Augusto Cauchick Miguel

PurposeEffectively managing risk is an essential element of successful project management. In this sense, the present study seeks to propose a systematisation of technical risk management through the use of FMEA to optimise the decision making process in new product development (NPD).Design/methodology/approachThe methodological approach adopted in this paper is a case study at an automaker in Brazil. Data were gathered from various sources, mostly participant observation and document analysis of two important NPD programmes. The risk management system was described and its influence on programs development analysed.FindingsResults included a reduction in the number of project and test planning loopings as well as a reduced number of prototypes needed to approve product components. In addition, there was a positive influence on the product development decision‐making process, evidenced by better allocation of resources among projects at the programme.Research limitations/implicationsThe study is limited to a single case study which considers two major NPD programmes. Replications among other units of analysis are needed to further validate current findings.Originality/valueThis paper is one of the few published studies that report and discuss the FMEA within a broad context of risk analysis.


2019 ◽  
Vol 13 (2) ◽  
pp. 342-362
Author(s):  
Xiaodong Yuan ◽  
Xiaotao Li

Purpose The purpose of this paper is to explore how an organization can combine different types of open innovations and what are the key factors that may influence the combination of different open innovations. Design/methodology/approach The basic methodology of this paper is the longitudinal inductive analysis within the conceptual framework of the open innovation proposed by Dahlander and Gann (2010). In this case study of Xiaomi Tech Inc., the open innovation combination is investigated through examining 25 new products created between August 2010 and December 2016 in terms of four general types: acquiring, sourcing, selling and revealing open innovation. Findings In practice, the combination of different types of open innovations can be realized. A firm may combine different open innovations at three levels: a single product level, a related product cluster level and a company level. In addition, different open innovations can be combined in diverse modes. The purpose of combining different types of open innovations is to overcome the disadvantages of each type and to exploit the advantages of all different types. Many factors may affect a firm’s option of how to combine open innovations. At different development stages, a firm may make and implement corresponding strategic direction based on its innovation capacity and internal resource. For a given strategy, the firm needs to create profits and manage intellectual property in the implementation of open innovations. These factors are interacted each other, rather than isolated. Originality/value The findings of this paper are helpful for better understanding how and why an organization can combine different types of open innovations. From a managerial point of view, an organization may combine different types of open innovations to leverage advantages and avoid disadvantages of each certain type of open innovation. An appropriate combination of different open innovations can effectively improve new product development.


2018 ◽  
Vol 8 (4) ◽  
pp. 1-31
Author(s):  
Diantha D’Costa ◽  
Virginia Bodolica ◽  
Martin Spraggon

Learning outcomes Upon completion of this case study analysis, the course audience is expected to achieve four learning outcomes. In particular, students should be able to conduct a comprehensive organizational diagnosis to uncover the peculiarities of managing a family business; analyze the specific challenges faced by family-owned enterprises in the context of emerging markets; evaluate the succession management practices in family organizations and design a profile of a successful successor; assess the effectiveness of managerial decision-making and provide recommendations for securing the sustainability of a family firm. Case overview/synopsis This case study unveils the tumultuous story of Vishwanath Shetty, an ambitious entrepreneur who transformed his small venture into a profitable family business with operations in Middle East, Asia and Africa. Since the early establishment of Qontrac International in 1989, he relied on the ownership and management participation of several members of his and his wife’s families. Over the years, Vishwanath was successful in pursuing a strategy of continuous growth and geographic diversification by taking advantage of the business opportunities in several regions and opening up branches in Oman, the United Arab Emirates (UAE), Ghana and India. Yet, almost three decades after its launch, the company was confronted with a number of family, growth and succession management challenges that endangered its survival in the long run. The Shetty family experienced a serious rift due to financial reasons, the performance of the two branches managed by siblings declined, and the old firm structure and management style did not fit well with the newly enlarged and geographically dispersed Qontrac International. To deal with these organizational issues, Vishwanath was faced with an additional dilemma of securing the support of a suitable intra-family candidate who could join the family business and become his successor. By describing the strategic events and family dynamics that shaped the evolution of Qontrac International over time, the case provides an opportunity to assess the effectiveness of managerial decision-making in the context of family firms and provide viable recommendations for ensuring firm survival and longevity. Complexity academic level Upper-level undergraduate audience Graduate audience (in Master of Global Entrepreneurial Management program). Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code Strategy.


2019 ◽  
Vol 34 (7) ◽  
pp. 1434-1447 ◽  
Author(s):  
Tindara Abbate ◽  
Anna Paola Codini ◽  
Barbara Aquilani

Purpose The purpose of this paper is to understand how Open Innovation Digital Platforms (OIDPs) can facilitate and support knowledge co-creation in Open Innovation (OI) processes. Specifically, it intends to investigate the contribution of OIDPs-oriented to successfully implement all the phases of interactive coupled OI processes. Design/methodology/approach The paper carries out an exploratory qualitative analysis, adopting the single case study method. The case here investigated is Open Innovation Platform Regione Lombardia (OIPRL). Findings The case study sheds light on how OIPRL supports knowledge co-creation through its processes, tools and services as a co-creator intermediary. In its launch stage, the platform simply aimed at giving firms a tool to “find partners” and financial resources to achieve innovative projects. Now, however, the platform has developed into an engagement platform for knowledge co-creation. Research limitations/implications One limitation lies in the particular perspective used to perform the case study: the perspective of the digital platform itself. Future research should focus on the individuals engaged in the platform to better investigate the processes, tools and services used to implement the OI approach. Practical implications The paper suggests ways in which OIDPs could be used by firms for effective exploration, acquisition, integration and development of valuable knowledge. Originality/value The study conceptualizes the role of OIDPs in shaping knowledge co-creation, assuming that the platforms act as Open Innovation Intermediaries (OIIs). Specifically, OIDPs can be observed to function as “co-creator intermediaries” that define, develop and implement dedicated processes, specific tools and appropriate services for supporting knowledge co-creation activities.


2017 ◽  
Vol 8 (3) ◽  
pp. 324-345 ◽  
Author(s):  
Hermínia Sol ◽  
Marisa P. de Brito ◽  
João Pinto Coelho ◽  
Luís Mota Figueira ◽  
Christopher Pratt ◽  
...  

Purpose With fierce competition in capturing tourists, it is crucial that destinations be prepared to adapt and to refresh their event portfolio. The purpose of this paper is to look into the decision-making process that led to the development of a new festival in a middle-sized city, Tomar, in Portugal. Design/methodology/approach This study analyses the creation process of the Knights Templar Festival, in Tomar, a new event focusing on the Templar history of the city. A retrospective outlook on the evolution of the event is given. Primary data were collected via quantitative survey analysis and semi-structured interviews. The theoretical scope is events and placemaking. Findings The strengths and weaknesses of the region influenced the conception and setting up of this particular event. This awareness is important for cities in meeting the challenges and opportunities that event portfolio diversification calls for. Research limitations/implications This paper helps us to understand the motives and challenges in establishing a new event in the city, through the analysis of a single case study of a European middle-sized city. Simultaneously, it is a longitudinal in-depth case of the first editions of a new historically focused event. Practical implications Several practical implications can be derived to the case of Tomar. Overall, it is key that cities align the focus of new events with the city’s identity (as Tomar did). Originality/value This paper presents an in-depth and longitudinal case study, from the moment of the creation of a new event to its fourth edition, mapping the decision-making process, highlighting the learning curve of the decision makers.


2017 ◽  
Vol 23 (2) ◽  
pp. 377-398 ◽  
Author(s):  
Jens Ohlsson ◽  
Shengnan Han ◽  
Harry Bouwman

Purpose The purpose of this paper is to demonstrate and evaluate the prioritization and categorization method (PCM), which facilitates the active participation of process stakeholders (managers, owners, customers) in process assessments. Stakeholders evaluate processes in terms of effectiveness, efficiency and relevance against certain contextual business and industry factors. This collective evaluation serves as a foundation for the management decision-making process regarding process improvement and redesign. Design/methodology/approach The PCM is examined based on a case study at Ericsson. In total, 55 stakeholders, representing different organizational levels and functions, assessed eight core processes. Follow-up interviews and feedback after the evaluation sessions were collected for triangulation purpose. Findings The PCM helps Ericsson evaluate its processes within business context and industry environments. The results show that, to realize seamless end-to-end processes in the eight assessed processes, Ericsson has to make a greater effort to improve its process structures, governance and culture for fulfilling the needs of future business. Ericsson Steering Group is satisfied with the insights provided and has decided to train more stakeholders to use PCM. Research limitations/implications This research is based on a single case within a specific organizational setting. The results may not be necessary generalizable to other business and industry settings. Organizations need to configure PCM in consideration of their own processes and business contingencies to explore and fulfil their process improvement purposes. Originality/value This paper presents a new context-aware, easy-to-use and holistic method for business process management (BPM), the PCM. The method requires the active engagement of stakeholders, it focusses on developing dynamic BPM capabilities and fully embeds organizational contingencies and contextual factors in the decision-making regarding BPM. This paper contributes a novel method to explorative BPM.


2018 ◽  
Vol 39 (6) ◽  
pp. 21-28 ◽  
Author(s):  
Pierre-Jean Barlatier ◽  
Emmanuel Josserand

Purpose This paper aims to explore how social media can be used strategically for delivering the promises of open innovation and examines the types of structure that can foster the integration of these new tools with more classic top-down innovation approaches. Design/methodology/approach A single case study of, ALPHA (pseudonym), a multinational company that combined an integrated strategy and the creation of a lean structure with the full potential of social media. Findings To take on the challenges of energy transition, ALPHA has implemented a low-cost approach allowing it to harness the promises of open innovation. This combined the introduction of a lean structure, two social media platforms and processes that ensured the integration of open innovation activities with existing departments. Research limitations/implications The research is based on a single case study. Further research should be conducted to establish the generalization of the results. Practical implications This paper highlights the key success factors in making such a light approach successful, namely, controlling cost and disruption of open innovation; integration matters; leveraging complementarities with existing social media initiatives; and bottom-up adoption. Originality/value The research provides a unique approach that can be practically implemented to leverage social media to deliver the promises of open innovation and offers an original way of integrating social media lead innovation and open innovation strategies with more classic R&D activities.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Karen Philip ◽  
Jim Arrowsmith

PurposeThe strategic human resource management (HRM) literature emphasises the importance of employee involvement and participation for outcomes such as job satisfaction, employee retention and organisational performance. Situational factors identified as conducive to employee participation in decision-making include small size, via less hierarchical, proximate and informal workplace relations. Ownership and mission are also important, with not-for-profit (NFP) organisations generally having more collectivist, commitment-based cultures that support open decision-making. However, such organisations often have weak HRM policies and practices. This paper examines the process and outcomes of employee participation in a small NFP through in-depth case study research.Design/methodology/approachSingle case study utilising longitudinal participant observation, interviews, reflective diary, documentary analysis.FindingsOperating as a collective, the organisation was bound by time and capacity limitations in its ability to plan strategically or even to make routine decisions. Basic HR policies and practices in areas such as staff recruitment and performance management were sub-standard or unobserved. Consequences included poor management, inconsistent training, staff burnout, high labour turnover and sub-optimal performance. The results suggest that weak managerial coordination and the absence of a dedicated HR function subvert effective people management. In such circumstances, strong forms of employee participation fail to deliver anticipated equity and efficiency outcomes.Research limitations/implicationsSingle case study.Practical implicationsSmall organisations need HR policies and dedicated support to ensure that employee involvement and participation are effective.Originality/valueThe findings demonstrate how employee involvement and participation can be subverted by inadequate HR processes, adding qualitative evidence to support theories of HR “bundling” in high-involvement work practices. The research also contributes to the neglected area of HRM in small NFPs.


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