Abstract
This study explores the reasons why the growth of biopharmaceutical firms in latecomer countries such as Taiwan has been slower than information and communication technology (ICT) firms. Unlike prior studies that focus on industry-level driving forces, this study offers a firm-level perspective to explore factors which drive industry growth. By utilizing resource-based theory and institutional theory, this study dentify the unique drivers which influenc the growth of latecomer firms. Meanwhile, using the DEMATEL (Decision Making Trial and Evaluation Laboratory) method to analyse the data that collected from interviews with high-level directors and managers of several public and non-public biopharmaceutical and ICT firms in Taiwan. By comparing the empirical findings, the study argued that the most important growth driver in Taiwan’s biopharmaceutical firms overwhelmingly rely on internal informal factors, namely ‘leadership and governance’. This study reveals Taiwan’s biopharmaceutical firms lack the capability of adapting external institutions and utilizing resources. It shows the disconnection with external industrial dynamics and a misalignment of strategic resources. In contrast, the main driver force of ICT firms is internal formal institutional factor, namely ‘organizational supporting mechanism’. It has built a good resource application loop for ICT firms. The study concludes that such misalignment and disconnection are induced by institutional constraints within the domestic market and network.