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Governance and resource interaction in networks. The role of venture capital in a biotech start-up

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  • Strömsten, Torkel
  • Waluszewski, Alexandra

Abstract

This paper examines venture capital (VC) governance in innovation processes. The VC literature often presents the relationship between a VC firm and a start-up as dyadic and analyzes it with agency theory. In contrast, this paper deploys the resource interaction framework presented in Håkansson and Waluszewski (2002) to governance and innovation in networks. The paper reports an in-depth case study of Pyrosequencing, a Swedish biotech firm financed with VC. The results from this study reveal how the relationship between a VC and a start-up company is embedded in a wider network and how the governance of the VC spreads in the surrounding network and influences a start-up's possibilities to develop organizational and technical resource interfaces to critical counterparts such as suppliers and customers.

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  • Strömsten, Torkel & Waluszewski, Alexandra, 2012. "Governance and resource interaction in networks. The role of venture capital in a biotech start-up," Journal of Business Research, Elsevier, vol. 65(2), pages 232-244.
    • Handle: RePEc:eee:jbrese:v:65:y:2012:i:2:p:232-244
    DOI: 10.1016/j.jbusres.2010.11.030
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    5. Nhu Laursen, Linda & Houman Andersen, Poul, 2023. "Resource and supplier interaction in network innovation governance: The case of innovating at Unilever," Journal of Business Research, Elsevier, vol. 156(C).
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    7. Walters, Bruce A. & Le, Son A. & Kroll, Mark, 2015. "Post-IPO governance and top management team rent generation and appropriation," Journal of Business Research, Elsevier, vol. 68(1), pages 47-55.
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    10. Michał Gazdecki & Grzegorz Leszczyński & Marek Zieliński, 2021. "Food Sector as an Interactive Business World: A Framework for Research on Innovations," Energies, MDPI, vol. 14(11), pages 1-19, June.
    11. Tambo, Torben, 2014. "Collaboration on technological innovation in Danish fashion chains: A network perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 21(5), pages 827-835.
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