Industrial Dynamics and Business Strategies in the Emergence of Agricultural Biological Inputs

ABSTRACT Biological products present a sustainable alternative to synthetic agricultural inputs, yet the industrial dynamics triggered by these solutions remain unexplored. This study examines the strategic responses of dominant agricultural input firms to the rise of biological solutions. Through qualitative textual analysis of press releases, company reports, and other public sources, we identify five key strategies followed by incumbents: portfolio expansion, marketing and distribution, technological complementarities, product development, and window of technology. These exploration strategies are pivotal in shaping the technological and market trajectories of sustainable innovations, particularly in a sector characterized by market concentration. While synergies exist between chemical and biological products, incumbents face challenges adapting to the distinct rationale of these products. This study offers practical insights for firms operating in this emerging market while underscoring how incumbents play a dual role in navigating adaptation challenges while influencing the scalability and commercialization of these emerging sustainable technologies.