Faculty of Economics and Business Administration Publications Database

Organizational integration of acquired biotechnology companies in pharmaceutical companies:The need for a hybrid strategy

Volume: 48
Number: 6
Pages: 1051 - 1074
Month: December
ISSN-Print: 0001-4273
Link External Source: Online Version
Year: 2005
Keywords: Industrial management; Pharmaceutical industry; Technological innovation; Medical innovations; Biotechnology; Pharamceutical industry; Industrial management
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.