Orchestrating networks in the biopharmaceutical industry: small hub firms can do it

The biopharmaceutical industry has been one of the most dynamic and promising sectors. The entry of Biotechnology start-ups in the 1980s led to the reconfiguration of the drug development value chain and the emergence of new competences. As the sector evolved, specialised firms appeared. As the industry matures, the production process becomes more specialised to support optimisation of technological steps. Our case studies reveal that the coordination of networks can be specialised, with the emergence of Dedicated Coordinating Firms. On the basis of four case studies of European biotechnology companies within a business model approach, this article helps understanding how coordinating a network can be successful and how small hub firms can do it.