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Diffusing knowledge-based core competencies for leveraging innovation strategies: modelling outsourcing to knowledge process organizations (KPOs) in pharmaceutical networks

Gupta, Samir, Woodside, Arch, Dubelaar, Chris and Bradmore, Don 2009, Diffusing knowledge-based core competencies for leveraging innovation strategies: modelling outsourcing to knowledge process organizations (KPOs) in pharmaceutical networks, Industrial marketing management, vol. 38, no. 2, pp. 219-227, doi: 10.1016/j.indmarman.2008.12.010.

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Title Diffusing knowledge-based core competencies for leveraging innovation strategies: modelling outsourcing to knowledge process organizations (KPOs) in pharmaceutical networks
Author(s) Gupta, Samir
Woodside, Arch
Dubelaar, Chris
Bradmore, Don
Journal name Industrial marketing management
Volume number 38
Issue number 2
Start page 219
End page 227
Total pages 9
Publisher Elsevier
Place of publication Amsterdam, The Netherlands
Publication date 2009-02
ISSN 0019-8501
Keyword(s) Networks
Pharmaceutical Industry Knowledge
Outsourcing
Summary As pharmaceutical firms try to market their products and reduce costs, vertically integrated structureshamper innovation processes. Yet, pharmaceutical firms must innovate to compete. Outsourcing knowledgeintensive activities to knowledge process organizations (KPOs) serves to reduce innovation process obstacles.Grounded in diffusion theory and strategic management literature, this conceptual paper explores fourinterrelated strategic concepts: core competencies, economies of scale and scope, knowledge sharing,and learning. This paper claims that (a) accumulated core competencies of multinational pharmaceuticalcompanies (MPCs) erode over time and these companies become dependent on KPOs (b) MPCs mustunderstand how KPOs manage core competencies (c) economies of scope benefit KPOs enabling them tosustain competitive advantages for their MPC partners, meanwhile the benefits from economies of both scaleand 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.
Language eng
DOI 10.1016/j.indmarman.2008.12.010
Field of Research 150503 Marketing Management (incl Strategy and Customer Relations)
Socio Economic Objective 909999 Commercial Services and Tourism not elsewhere classified
HERDC Research category C1.1 Refereed article in a scholarly journal
ERA Research output type C Journal article
Copyright notice ©2009, Elsevier
Persistent URL http://hdl.handle.net/10536/DRO/DU:30073104

Document type: Journal Article
Collections: Faculty of Business and Law
School of Management and Marketing
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