External knowledge sourcing in biotechnology through acquisition versus alliance: A KBV approach
AbstractKnowledge sourcing is important for firms, especially in fast-paced industries. However, few studies explore the effects of knowledge-based predictors on the comparative choice of employing acquisitions versus alliances for sourcing external knowledge. This study extends the limited existing research on this topic. It simultaneously examines the effects of knowledge domain attributes, seeker and source experience-based knowledge, and dyad knowledge similarity and digestibility on whether a firm chooses an acquisition or alliance when sourcing external knowledge. Data is comprised of 209 research-driven acquisitions and alliances of biotechnology firms based in North America. Our findings reveal that external knowledge sourcing through acquisition is more likely when the knowledge domain is more complex and valuable. Acquisition is also preferred when the seeker has greater acquisition experience and when the source has accumulated a moderate level of alliance experience. Alliance, in contrast, is the chosen mode for accessing external knowledge when the knowledge is high in specificity and when the seeker has prior alliance experience. In addition, increasing similarity and digestibility of the dyad's knowledge bases strengthen the relationship between knowledge value and the probability of acquisition versus alliance. These results extend understanding of how firms decide to augment their knowledge resources in a knowledge-intensive industry. They also demonstrate that a multilevel KBV approach emphasizing knowledge characteristics uncovers important predictors of strategy and structure in research-driven organizations.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Research Policy.
Volume (Year): 39 (2010)
Issue (Month): 2 (March)
Contact details of provider:
Web page: http://www.elsevier.com/locate/respol
Knowledge Acquisitions Alliances Knowledge-based view Biotechnology;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Andrew C. Inkpen, 2000. "Learning Through Joint Ventures: A Framework Of Knowledge Acquisition," Journal of Management Studies, Wiley Blackwell, vol. 37(7), pages 1019-1044, November.
- Ingemar Dierickx & Karel Cool, 1989. "Asset Stock Accumulation and Sustainability of Competitive Advantage," Management Science, INFORMS, vol. 35(12), pages 1504-1511, December.
- Zvi Griliches, 1990.
"Patent Statistics as Economic Indicators: A Survey,"
NBER Working Papers
3301, National Bureau of Economic Research, Inc.
- Zvi Griliches, 1998. "Patent Statistics as Economic Indicators: A Survey," NBER Chapters, in: R&D and Productivity: The Econometric Evidence, pages 287-343 National Bureau of Economic Research, Inc.
- Griliches, Zvi, 1990. "Patent Statistics as Economic Indicators: A Survey," Journal of Economic Literature, American Economic Association, vol. 28(4), pages 1661-1707, December.
- Bruce Kogut & Udo Zander, 1993. "Knowledge of the Firm and the Evolutionary Theory of the Multinational Corporation," Journal of International Business Studies, Palgrave Macmillan, vol. 24(4), pages 625-645, December.
- Raymond van Wijk & Justin J. P. Jansen & Marjorie A. Lyles, 2008. "Inter- and Intra-Organizational Knowledge Transfer: A Meta-Analytic Review and Assessment of its Antecedents and Consequences," Journal of Management Studies, Wiley Blackwell, vol. 45(4), pages 830-853, 06.
- Hongxin Zhao & Yadong Luo & Taewon Suh, 2004. "Transaction cost determinants and ownership-based entry mode choice: a meta-analytical review," Journal of International Business Studies, Palgrave Macmillan, vol. 35(6), pages 524-544, November.
- X Martin & R Salomon, 2003. "Knowledge transfer capacity and its implications for the theory of the multinational corporation," Journal of International Business Studies, Palgrave Macmillan, vol. 34(4), pages 356-373, July.
- repec:fth:harver:1473 is not listed on IDEAS
- Hennart, J.-F.M.A., 1991.
"The transaction costs theory of joint ventures : an empirical study of Japanese subsidiaries in the United States,"
Open Access publications from Tilburg University
urn:nbn:nl:ui:12-175820, Tilburg University.
- Jean-François Hennart, 1991. "The Transaction Costs Theory of Joint Ventures: An Empirical Study of Japanese Subsidiaries in the United States," Management Science, INFORMS, vol. 37(4), pages 483-497, April.
- Gomes-Casseres, Benjamin, 1989. "Ownership structures of foreign subsidiaries : Theory and evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 11(1), pages 1-25, January.
- Ingemar Dierickx & Karel Cool, 1989. "Asset Stock Accumulation and the Sustainability of Competitive Advantage: Reply," Management Science, INFORMS, vol. 35(12), pages 1514-1514, December.
- Hennart, J.-F.M.A. & Reddy, S., 1997. "The choice between mergers/acquisitions and joint ventures: the case of Japanese investors in the United States," Open Access publications from Tilburg University urn:nbn:nl:ui:12-175778, Tilburg University.
- Balakrishnan, Srinivasan & Koza, Mitchell P., 1993. "Information asymmetry, adverse selection and joint-ventures : Theory and evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 20(1), pages 99-117, January.
- Dirk De Clercq & Dimo Dimov, 2008. "Internal Knowledge Development and External Knowledge Access in Venture Capital Investment Performance," Journal of Management Studies, Wiley Blackwell, vol. 45(3), pages 585-612, 05.
- Mary Benner & Joel Waldfogel, 2007.
"Close to You? Bias and Precision in Patent-Based Measures of Technological Proximity,"
NBER Working Papers
13322, National Bureau of Economic Research, Inc.
- Benner, Mary & Waldfogel, Joel, 2008. "Close to you? Bias and precision in patent-based measures of technological proximity," Research Policy, Elsevier, vol. 37(9), pages 1556-1567, October.
- Cloodt, Myriam & Hagedoorn, John & Van Kranenburg, Hans, 2006. "Mergers and acquisitions: Their effect on the innovative performance of companies in high-tech industries," Research Policy, Elsevier, vol. 35(5), pages 642-654, June.
- Robert M. Grant & Charles Baden-Fuller, 2004. "A Knowledge Accessing Theory of Strategic Alliances," Journal of Management Studies, Wiley Blackwell, vol. 41(1), pages 61-84, 01.
- Mowery, David C. & Oxley, Joanne E. & Silverman, Brian S., 1998. "Technological overlap and interfirm cooperation: implications for the resource-based view of the firm," Research Policy, Elsevier, vol. 27(5), pages 507-523, September.
- Julian Birkinshaw, 2000. "Managing the Post-acquisition Integration Process: How the Human Iintegration and Task Integration Processes Interact to Foster Value Creation," Journal of Management Studies, Wiley Blackwell, vol. 37, pages 395-425, 05.
- Peter J Buckley & Mark Casson, 1996. "An Economic Model of International Joint Venture Strategy," Journal of International Business Studies, Palgrave Macmillan, vol. 27(4), pages 849-876, December.
- Peter J Buckley & Mark Casson, 1996. "An Economic Model of International Joint Venture Strategy," Journal of International Business Studies, Palgrave Macmillan, vol. 27(5), pages 849-876, December.
- Margaret A. Peteraf & Jay B. Barney, 2003. "Unraveling the resource-based tangle," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 24(4), pages 309-323.
- Sorenson, Olav & Rivkin, Jan W. & Fleming, Lee, 2006. "Complexity, networks and knowledge flow," Research Policy, Elsevier, vol. 35(7), pages 994-1017, September.
- Yuandi Wang & Zhao Zhou & Jason Li-Ying, 2013. "The impact of licensed-knowledge attributes on the innovation performance of licensee firms: evidence from the Chinese electronic industry," The Journal of Technology Transfer, Springer, vol. 38(5), pages 699-715, October.
- Chiara Franco & Alberto Marzucchi & Sandro Montresor, 2011.
"The "potential" face of absorptive capacity. An empirical investigation for an area of 3 European countries,"
Openloc Working Papers
1106, Public policies and local development.
- Chiara Franco & Alberto Marzucchi & Sandro Montresor, 2011. "The “potential” face of absorptive capacity. An empirical investigation for an area of 3 European countries," Working Papers 2011R08, Basque Institute of Competitiveness.
- Francis Bidault & Thomas Hildebrand, 2012. "The distribution of partnerships benefits: Evidence from co-authorships in economics journals," ESMT Research Working Papers ESMT-12-08, ESMT European School of Management and Technology.
- Bidault, Francis & Hildebrand, Thomas, 2014. "The distribution of partnership returns: Evidence from co-authorships in economics journals," Research Policy, Elsevier, vol. 43(6), pages 1002-1013.
- Woltering-Lamers, Philipp, 2011. "Die sequenzielle Organisationswahl: Kooperationen als Vorstufe von Akquisitionen," Arbeitspapiere 122, Westfälsche Wilhelms-Universität Münster (WWU), Institut für Genossenschaftswesen.
- Wua, Pei-Ju & Fenga, Cheng-Min & Pana, Ya-Chuan, 2011. "Decisions about entry modes for telecom companies into digital music business: An empirical case study," 8th Asia-Pacific Regional ITS Conference, Taipei 2011: Convergence in the Digital Age 52342, International Telecommunications Society (ITS).
- Peeters, T.J.G., 2013. "External knowledge search and use in new product development," Open Access publications from Tilburg University urn:nbn:nl:ui:12-5906731, Tilburg University.
- Raphael Greiner & Siah Ang, 2012. "Biotechnology collaborations: does business model matter?," Journal of Management and Governance, Springer, vol. 16(3), pages 377-392, August.
- Marcela Miozzo & Lori DiVito & Panos Desyllas, 2011. "Cross-border acquisitions of science-based firms: Their effect on innovation in the acquired firm and the local science," DRUID Working Papers 11-17, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
- Peng, Mike W. & Lee, Seung-Hyun & Hong, Sungjin J., 2014. "Entrepreneurs as intermediaries," Journal of World Business, Elsevier, vol. 49(1), pages 21-31.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.