Abstract:
The US healthcare industry offers an opportunity to biotechnology and life science firms across the world to compete in various disease markets and target larger populations of customers to achieve greater revenue and growth. However, predicting the efficiency of technology adoption is difficult due to the multifactorial and context-dependent nature of the clinical ecosystem. In order for entrant firms to facilitate entry and penetration of novel technologies within targeted markets, they must consider the role of technology adoption in their business strategies. Firms must attempt to strategically align values between key stakeholders in early and mainstream markets and consider external factors that can affect technology adoption. Theory relating technology adoption life cycles to stakeholder values in healthcare is unclear. However, various concepts provide contributions to the topic, including models of technology adoption, disruptive innovation, and customer development. This research aims to consolidate these theories and investigate the engagement strategies of firms within clinical settings. An exploratory case study method was utilised, documenting the perspectives of six global life science firms that had experience commercialising their technologies in the US healthcare industry as the empirical context. Qualitative data gathered through semi-structured interviews was analysed using the Critical Realism methodology. This identified three broad conditions including customer, strategy, and environment and underlying mechanisms that influenced technology adoption. These insights contributed to an understanding of adoption strategies and management processes. Finally, the findings were compared with business and healthcare management literature to consolidate, compare, and provide further details to results. This research contributes to business management and stakeholder value literature to provide clarity to the complex topic of technology adoption and assist firms that aim to commercialise their innovations within the US healthcare industry. A modified conceptual framework provides structure to technology adoption and outlined key stakeholders and market dynamics. Furthermore, this study provides suggestions to exploit mechanisms within target markets and create awareness around barriers and external risks in adoption strategies.