A type of environment characterised by rapid and discontinuous changes involving multiple parameters (technology, demand, regulations...). These changes render imprecise, unavailable or obsolete the information at the disposal of firms to formulate their strategy, thus generating a high degree of uncertainty to be dealt with. They are also defined as turbulent environments or hypercompetitive environments. Science-based sectors, such as the pharmaceutical industry, are usually considered to be high-velocity environments.
Published in Chapter:
Competitive Advantage, Open Innovation, and Dynamic Capabilities: Is Sanofi Employing an Open Innovation Strategy?
Geoffroy Labrouche (IEP de Toulouse, France) and Med Kechidi (Université Toulouse Jean-Jaurès, France)
Copyright: © 2016
|Pages: 25
DOI: 10.4018/978-1-5225-0135-0.ch006
Abstract
This chapter deals with a particular type of dynamic capability: dynamic relational capabilities. They are defined as the organisational ability of a firm to enter into successful business relationships with other actors. It is shown that these abilities, based on organisational memory, are expressed in particular through the acquisition of assets and the conclusion of partnerships/alliances. In the pharmaceutical industry, open innovation strategies are the concrete proof of such abilities. Indeed, this sector is considered to be a High-Velocity Environment characterized by a high rate of change. Such change, challenging firms' competitive advantage, fosters the development of dynamic capabilities and open innovation strategies. These theoretical considerations are illustrated by reference to the innovation strategy adopted by the Sanofi group, particularly since 2008.