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Cross-industry Collaborations in the Convergence Area of Functional Foods

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  • Bornkessel, Sabine
  • Broering, Stefanie
  • Omta, S.W.F. (Onno)

Abstract

Convergence processes are based on the activity of distinct industry sectors showing cross-industry collaborations. The aim of this paper is to analyze cross-industry collaborations between the food and pharmaceutical sectors in the convergence area of functional foods. Selected companies from food (Nestlé/Danone) and pharmaceutical (Martek/Bayer HealthCare) sectors are analyzed using the determinants of motivation and industrial scope. The analysis shows that food companies are more active in cross-industry collaborations than pharmaceutical companies. The latter are more active at the front-end of the value chain focusing on research and development, and delivering their ingredients to food companies that due to their higher expertise in consumer marketing launch the products. While the first cross-industry collaborations were based on an exploration motivation, those that follow focus on exploitation. Acquisitions and licensing agreements are dominant in inside-out and outside-in processes, whereas strategic alliances and joint ventures are based on a coupled process between the food and pharmaceutical sectors.

Suggested Citation

  • Bornkessel, Sabine & Broering, Stefanie & Omta, S.W.F. (Onno), 2016. "Cross-industry Collaborations in the Convergence Area of Functional Foods," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(2), pages 1-24, May.
    • Handle: RePEc:ags:ifaamr:234957
    DOI: 10.22004/ag.econ.234957
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    Cited by:

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    3. Aaldering, Lukas Jan & Leker, Jens & Song, Chie Hoon, 2019. "Uncovering the dynamics of market convergence through M&A," Technological Forecasting and Social Change, Elsevier, vol. 138(C), pages 95-114.

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