TRACING THE TRAJECTORY OF INDUSTRY LEADER’S DRUG INNOVATION CAPABILITY: THE AMGEN CORPORATION CASE

The origin of organizational capabilities remains elusive to strategy managers and scholars. Because of this elusiveness, a scholar has questioned: where [do] capabilities come from [and] what kinds of investment in money, time, and managerial efforts is required in building them [Ethiraj, et al. 2005, Strategic Management Journal, 26, 25-45]. Using the lens of the upper echelon theory, this case provides evidence that Amgen’s President hired stair-scientists who then developed the first drugs that launched Amgen as the global biopharmaceutical industry leader. This way, this case study contributes answers to the questions raised by Ethiraj and colleagues (2005). In sum, this real-world case discussion has practical significance to managers and academics alike.