No Access

BIOTECHNOLOGY INNOVATION: A LEGITIMACY-BASED VIEW

MARK J. AHN

College of Business, Creighton University, Omaha, Nebraska, USA

Corresponding author.

Search for more papers by this author

ANNE S. YORK

College of Business, Creighton University, Omaha, Nebraska, USA

Search for more papers by this author

SO YOUNG SOHN

Yonsei University. Seoul, Korea

Search for more papers by this author

, and

PAYAM BENYAMINI

University of California, Los Angeles, California, USA

Search for more papers by this author

https://doi.org/10.1142/S0219877013500156Cited by:1 (Source: Crossref)

Abstract

Disruptive technology platforms from emerging companies hold great promise for exploiting innovation, but often face legitimacy hurdles due to their liability of newness. Nascent firms must learn new roles with limited precedent, and establish ties with an environment that may not fully understand or value their existence. Using a legitimacy-based lens in the context of the biotechnology industry, we posit a sequential construct — cognitive, regulative, and normative legitimacy — to evaluate emergent technology platforms. Our model of biotechnology platform emergence may provide insights for understanding how breakthroughs achieve legitimacy in the scientific community, mobilize resources and talent, and attain commercial success.

Keywords:

References

C. P. Adams and V. V. Brantner , Health Affairs 25 , 420 ( 2006 ) . Crossref, Google Scholar
M. Ahn and M. Meeks , Journal of Commercial Biotechnology 14 , 20 ( 2007 ) . Crossref, Google Scholar
M. Ahn et al. , Journal of Commercial Biotechnology 16 , 17 ( 2009 ) . Crossref, Google Scholar
H. E. Aldrich and C. M. Fiol , Academy of Management Review 19 , 645 ( 1994 ) . Crossref, Google Scholar
S. S. Alkan , Nature Reviews Immunology 4 , 153 ( 2004 ) . Crossref, Google Scholar
P. Azoulay , R. Michigan and B. Sampat , New England Journal of Medicine 357 , 2049 ( 2007 ) . Crossref, Google Scholar
P. B. Bach , New England Journal of Medicine 360 , 626 ( 2009 ) . Crossref, Google Scholar
Barkemeyer, R. (2007). Legitimacy as a key driver and determinant of CSR in developing countries. Paper presented at Marie Curie Summer School on Earth System Governance . Google Scholar
J. A. C. Baum and C. Oliver , Administrative Science Quarterly 36 , 187 ( 1991 ) . Crossref, Google Scholar
J. A. C. Baum and C. Oliver , American Sociological Review 57 , 540 ( 1992 ) . Crossref, Google Scholar
S. Bell and M. A. Kamm , Lancet 355 , 58 ( 2000 ) . Crossref, Google Scholar
P. L. Berger and T. Luckmann , The Social Construction of Reality: A Treatise in the Sociology of Knowledge ( Doubleday and Company Inc , New York , 1966 ) . Google Scholar
BIO (Biotechnology Industry Organization) , BIO 2005–2006: Guide to Biotechnology ( BIO , Washington DC , 2007 ) . Google Scholar
BioCentury (2009). Available at www.biocentury.com (accessed on 17 September 2009) . Google Scholar
G. L. Boulianne , N. Hozumi and M. J. Shulman , Nature 312 , 643 ( 1984 ) . Crossref, Google Scholar
O. H. Brekke and I. Sandlie , Nature Review of Drug Discovery 2 , 52 ( 2003 ) . Crossref, Google Scholar
V. Brower , Nature Biotechnology 16 , 1304 ( 1998 ) . Crossref, Google Scholar
Burrill & Co. , Biotech 2007 Life Sciences: A Global Transformation ( Burrill Life Sciences Media Group , San Francisco , 2007 ) . Google Scholar
B. Cheson , Blood 1010 , 391 ( 2003 ) . Crossref, Google Scholar
C. Christensen and M. Overdorf , Harvard Business Review 78 , 66 ( 2000 ) . Google Scholar
D. E. Chubin , Evaluation Review 18 , 20 ( 1994 ) . Crossref, Google Scholar
B. Coffier , New England Journal of Medicine 346 , 235 ( 2002 ) . Crossref, Google Scholar
S. N. Cohen et al. , Proceedings of National Academy of Sciences 70 , 3240 ( 1973 ) . Crossref, Google Scholar
S. P. Colowick and O. N. Kapian , Methods in Enzymology 68 ( Academic Press , 1980 ) . Google Scholar
D. L. Deeds , P. Y. Mang and M. L. Frandsen , Strategic Organization 2 , 9 ( 2004 ) . Crossref, Google Scholar
D. L. Deephouse and S. M. Carter , Journal of Management Studies 42 , 329 ( 2005 ) . Crossref, Google Scholar
P. J. DiMaggio and W. W. Powell , American Sociological Review 48 , 147 ( 1983 ) . Crossref, Google Scholar
J. A. DiMasi , R. W. Hansen and H. G. Grabowski , Journal of Health Economics 22 , 151 ( 2003 ) . Crossref, Google Scholar
J. Dowling and J. Pfeffer , The Pacific Sociological Review 18 , 122 ( 1975 ) . Crossref, Google Scholar
C. M. Fiol and E. J. O'Connor , Artifacts and Organizations: Beyond Mere Symbolism , eds. A. Rafaeli and M. G. Pratt ( Routledge , London and New York , 2005 ) . Google Scholar
J. Freeman , G. R. Carroll and M. T. Hannan , American Sociological Review 48 , 692 ( 1983 ) . Crossref, Google Scholar
G. George , R. Kotha and Y. Zheng , Journal of Management Studies 45 , 1448 ( 2008 ) . Crossref, Google Scholar
S. Gopalakrishnan , J. L. Scillitoe and M. D. Santoro , Journal of Management Studies 45 , ( 2008 ) , DOI: 10.1111/j.1467-6486.2008.00777.x . Crossref, Google Scholar
M. T. Hannan and G. R. Carroll , Dynamics of Organizational Populations: Density, Legitimation, and Competition ( Oxford University Press , New York and Oxford , 1992 ) . Crossref, Google Scholar
M. T. Hannan et al. , American Sociological Review 60 , 509 ( 1995 ) . Crossref, Google Scholar
M. T. Hannan and J. Freeman , American Sociological Review 49 , 149 ( 1984 ) . Crossref, Google Scholar
F. J. Ingelfinger , American Journal of Medicine 56 , 686 ( 1974 ) . Crossref, Google Scholar
M. B. Khazaeli , R. M. Conry and A. F. LoBuglio , Journal of Immunotherapy 15 , 42 ( 1994 ) . Crossref, Google Scholar
G. Kohler and C. Milstein , Nature 256 , 495 ( 1975 ) . Crossref, Google Scholar
J. Kuilman and J. T. Li , Academy of Management Journal 52 , 229 ( 2009 ) . Crossref, Google Scholar
R. Kumar and T. K. Das , Journal of Management Studies 44 , ( 2007 ) , DOI: 10.1111/j.1467-6486.2007.00709.x . Crossref, Google Scholar
D. Laurie , Y. Doz and C. Sheer , Harvard Business Review 84 , 80 ( 2006 ) . Google Scholar
J. McCafferty et al. , Nature 348 , 552 ( 1990 ) . Crossref, Google Scholar
D. G. McKendrick et al. , Administrative Science Quarterly 48 , 60 ( 2003 ) . Crossref, Google Scholar
J. W. Meyer and B. Rowan , The American Journal of Sociology 83 , 340 ( 1977 ) . Crossref, Google Scholar
S. J. Mezias and J. I. Miller, Storming legitimacy barriers: Attention and favourability during emergence of the American film industry, Academy of Management Proceedings (2008) pp. 1–6. Google Scholar
R. A. Miller et al. , New England Journal of Medicine 306 , 517 ( 1982 ) . Crossref, Google Scholar
R. E. Morgan and P. Berthon , Journal of Management Studies 45 , ( 2008 ) , DOI: 10.1111/j.1467-6486.2008.00778.x . Crossref, Google Scholar
S. L. Morrison et al. , Proceedings of the National Academy of Sciences USA 81 , 6851 ( 1984 ) . Crossref, Google Scholar
A. L. Nelson and J. M. Reichert , Nature Biotechnology 27 , 331 ( 2009 ) . Crossref, Google Scholar
OECD (2012). Biotechnology policies. Available at www.oecd.org (accessed on 17 September 2009) . Google Scholar
R. K. Oldham , Journal of Clinical Oncology 1 , 582 ( 1983 ) . Crossref, Google Scholar
R. Oldham and R. O. Dillman , Journal of Clinical Oncology 26 , 1774 ( 2008 ) . Crossref, Google Scholar
T. Parsons , Structure and Process in Modern Societies ( Free Press , Glencoe , 1960 ) . Google Scholar
M. F. Pera and A. O. Trounson , Development 131 , 5515 ( 2004 ) . Crossref, Google Scholar
J. Pfeffer and G. R. Salancik , The External Control of Organizations: A Resource Dependence Perspective ( Harper and Row , New York , 1978 ) . Google Scholar
PhRMA (Pharmaceutical Research and Manufacturers of America) (2008). Pharmaceutical Industry Profile 2006. PhRMA, Washington DC . Google Scholar
G. Pisano , Science Business: The Promise, the Reality, and the Future of Biotech ( Harvard Business School Press , Boston , 2006 ) . Google Scholar
H. Rao , Advances in Strategic Management 19 , 307 ( 2002 ) . Crossref, Google Scholar
R. S. Rao , R. K. Chandy and J. C. Prabhu , Journal of Marketing 72 , 58 ( 2008 ) . Crossref, Google Scholar
J. M. Reichert , Nature Biotechnology 19 , 819 ( 2001 ) . Crossref, Google Scholar
A. S. Relman and M. Angell , New England Journal of Medicine 321 , 827 ( 1989 ) . Crossref, Google Scholar
M. Ruef and W. R. Scott, Administrative Science Quarterly 43(4), 877 (1998). Crossref, Google Scholar
W. R. Scott , Institutions and Organizations ( Sage , Thousand Oaks, CA , 1995 ) . Google Scholar
J. Singh , D. Tucker and R. House , Administrative Science Quarterly 31 , 171 ( 1986 ) . Crossref, Google Scholar
A. Skerra and A. Plückthun , Science 1240 , 1038 ( 1988 ) . Crossref, Google Scholar
R. Spier , Trends in Biotechnology 20 , 357 ( 2002 ) . Crossref, Google Scholar
A. L. Stinchcombe , Handbook of Organizations , ed. J. G. March ( Rand-McNally , Chicago , 1965 ) . Google Scholar
G. K. Stylios , P. V. Giannoudis and T. Wan , Injury 36 , S6 ( 2005 ) . Crossref, Google Scholar
M. C. Suchman , Academy of Management Review 20 , 571 ( 1995 ) . Crossref, Google Scholar
S. Terreberry , Administrative Science Quarterly 12 , 590 ( 1968 ) . Crossref, Google Scholar
Thomas, J. (2009). Biotech CEO: Firms that adapt to recession will thrive. Charlotte Business Journal. Available at www.charlotte.bizjournals.com (accessed on 2 June 2009) . Google Scholar
K. M. Thomson et al. , Journal of Immunological Methods 94 , 7 ( 1986 ) . Crossref, Google Scholar
T. A. Waldman , Science 252 , 1657 ( 1991 ) . Crossref, Google Scholar
Wierenga, D. and Eaton, C. (2006). Office of research and development. Pharmaceutical Manufacturers Association. Available at www.pharma.org (accessed on 17 December 2009) . Google Scholar
Zimmerman, M. A. and Deeds, D. L. (1987). Legitimacy and the initial public offerings of biotechnology firms. Frontiers for Entrepreneurship Research. Available at www.babson.edu/entrep/fer/papers97 (accessed on 17 December 2009) . Google Scholar
M. A. Zimmerman and G. J. Zeitz , Academy of Management Review 27 , 414 ( 2002 ) . Crossref, Google Scholar