Organizational Integration of Acquired Biotechnology Companies into Pharmaceutical Companies: The Need for a Hybrid Approach
Academy of Management Journal · 2005 · Volume 48 · Issue 6
DOI: 10.5465/amj.2005.19573109
Abstract
This analysis of the postacquisition integration of biotechnology companies by pharmaceutical companies addresses new issues in the pharmaceutical and biotechnology industries and includes five in-depth case studies. The guiding research question is how a biotech company is integrated into a pharmaceutical company seeking access to the biotech company's know-how, technologies, and innovative capabilities. I conclude that given the complexity and multifaceted nature of mergers and acquisitions, pharmaceutical companies need to apply a hybrid postacquisition integration approach with simultaneous short- and long-term motives/orientations and segmentation at a different pace across different value chain components.
Keywords
INDUSTRIAL management, PHARMACEUTICAL industry, BIOTECHNOLOGY industries, CONSOLIDATION & merger of corporations, RESEARCH, BIOTECHNOLOGY -- Research, TECHNOLOGICAL innovations, MEDICAL innovations, MANAGEMENT, INNOVATION adoption
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