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Technological knowledge base, R&D organization structure and alliance formation: Evidence from the biopharmaceutical industry |
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| Authors: | Jing Zhang Charles Baden-Fuller Vincent Mangematin |
| Institution: | a Institute for Entrepreneurship and Enterprise Development, Lancaster University Management School, Lancaster LA1 4YX, UK b Cass Business School, 106 Bunhill Row, London EC1Y 8TZ, UK c Grenoble Ecole Management (GEM), Grenoble, France and GAEL, INRA Université Pierre Mendès-France, BP 47, 38040 Grenoble Cedex 9, France |
| Abstract: | We explore how an incumbent firm's internal knowledge and organization structure influences its strategic alliance formation. We propose that the firm's knowledge breadth and the centrality of its R&D organization structure positively influence its absorptive capacity, and consequently, its propensity to form strategic alliances. We also argue that the centrality of the R&D organization structure may be a substitute for the breadth of the knowledge base. We validate our ideas using data on 2647 strategic alliances formed over the period of 1993-2002 by 43 major biopharmaceutical firms in the U.S. and Europe. Our discussion focuses on the application of the knowledge-based view of the firm to strategic alliance research. The implications for public policy in the biopharmaceutical industry are also emphasized. |
| Keywords: | O31 L2 M1 |
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