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Adaptation to change: Vertical and Horizontal integration in the drug industry

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  • Karrer-Rueedi, Erna

Abstract

In the early 1990s, highly complex and wide-reaching movements triggered major changes in the drug industry. Referring to the theoretical debate on industrial organizational policies and change, industry is developing either towards increased centralization, economies of scale and an emphasis on controlling developments, or it is moving towards economies of scope, deregulation coupled with decentralization and increased flexibility, thus towards a 'new industrial order' The drug industry's adaptation to change, as shown in this article, is unambiguous: horizontal and vertical integration. 'Bigger is better' is the common denominator, accompanied by the attempt to stabilize and control the environment.

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  • Karrer-Rueedi, Erna, 1997. "Adaptation to change: Vertical and Horizontal integration in the drug industry," European Management Journal, Elsevier, vol. 15(4), pages 461-469, August.
    • Handle: RePEc:eee:eurman:v:15:y:1997:i:4:p:461-469
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    Cited by:

    1. Verdu-Jover, Antonio J. & Alos-Simo, Lirios & Gomez-Gras, Jose-Maria, 2018. "Adaptive culture and product/service innovation outcomes," European Management Journal, Elsevier, vol. 36(3), pages 330-340.
    2. Jelena Grujić & Slobodan Morača & Angela Fajsi, 2020. "Analysis of Risk Factors in the Channels of Drug Distribution: Professional Perspectives," Sustainability, MDPI, vol. 12(11), pages 1-20, June.

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