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Co-evolutionary Perspective on Sourcing Portfolios: Examining Sourcing Choices for Clinical Trials of Bio-pharmaceutical Firms

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Abstract

Firms in many industries are faced with challenges in effectively managing their sourcing portfolios, defined as a firm’s collection of different sourcing choices (e.g., domestic in-house, domestic outsourcing, offshore outsourcing and captive offshoring) used to conduct a particular value-chain activity. While existing research provides valuable insights on the key factors driving firms’ decision-making regarding individual sourcing choice, important questions remain regarding antecedents and the evolution of portfolios of sourcing choices. We adopt a co-evolutionary perspective to answer the questions of how firms configure their sourcing portfolios, and what triggers changes in these configurations over time. In this study, we examine changes in bio-pharmaceutical firms’ sourcing portfolios for clinical trials. Based on qualitative case study analysis of four firms in this industry, we identify and track changes in internal and external processes of variation, selection and retention. Our study contributes to the co-evolutionary perspective on offshoring and outsourcing by refining the organizational level of analysis to consider portfolios as an important unit of analysis, and also by identifying evolutionary processes and mapping an evolutionary trajectory of changes in sourcing portfolios.

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Notes

  1. Our search in the Web of Science database for years 1900–2017 using key words ‘backsource*’, ‘back-source*’ or ‘reinsource*’ yielded 39 publications total with only 12 publications in the area of Management, Business and Economics that are relevant for our study.

  2. Orphan drugs are drugs which treat rare diseases. According to the Orphan Drug Act of 1982, any drug which has efficacy against a disease affecting fewer than 200,000 people in the US is known as an orphan drug (Bruyaka et al. 2013; Haffner 2006).

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Thakur-Wernz, P., Bruyaka, O. Co-evolutionary Perspective on Sourcing Portfolios: Examining Sourcing Choices for Clinical Trials of Bio-pharmaceutical Firms. Manag Int Rev 57, 909–946 (2017). https://doi.org/10.1007/s11575-017-0326-y

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