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Tapping Deep Pockets: The Role of Resources and Social Capital on Financial Capital Acquisition by Biotechnology Firms in Biotech-Pharma Alliances


  • Shanthi Gopalakrishnan
  • Joanne L. Scillitoe
  • Michael D. Santoro


Strategic alliances with pharmaceutical firms allow small biotechnology firms to acquire needed financial capital in exchange for sharing new, cutting-edge technologies. This study draws from aspects of resource-based view and social capital theory to examine the factors that influence the extent of financial capital biotech firms acquire when forming an alliance with pharmaceutical firms. Using a sample of 184 alliances from the period 1995-2000, we found that alliances where the pharmaceutical firm has greater management control are associated with greater acquisition of financial capital by the biotech firm. We also found that the credibility of the pharmaceutical firm is positively associated with the extent of financial capital acquired by the biotechnology firm and that the number of patents that the biotech firm has is negatively associated to the financial capital the biotech firm receives. We discuss the implications of our findings for theory, research, and management practice. Copyright (c) Blackwell Publishing Ltd 2008.

Suggested Citation

  • Shanthi Gopalakrishnan & Joanne L. Scillitoe & Michael D. Santoro, 2008. "Tapping Deep Pockets: The Role of Resources and Social Capital on Financial Capital Acquisition by Biotechnology Firms in Biotech-Pharma Alliances," Journal of Management Studies, Wiley Blackwell, vol. 45(8), pages 1354-1376, December.
  • Handle: RePEc:bla:jomstd:v:45:y:2008:i:8:p:1354-1376

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    References listed on IDEAS

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    Cited by:

    1. Lo Nigro, Giovanna & Perrone, Giovanni & Chiapparrone, Silvia, 2012. "Governance forms drivers in bio-pharmaceutical inter-firm relationships," International Journal of Production Economics, Elsevier, vol. 140(2), pages 604-613.
    2. repec:pab:wpbsad:16.01 is not listed on IDEAS
    3. Miguel Meuleman & Andy Lockett & Sophie Manigart & Mike Wright, 2010. "Partner Selection Decisions in Interfirm Collaborations: The Paradox of Relational Embeddedness," Journal of Management Studies, Wiley Blackwell, vol. 47(6), pages 995-1019, September.
    4. repec:eee:tefoso:v:122:y:2017:i:c:p:289-302 is not listed on IDEAS
    5. Mohammad Saleh Farazi & Ana Pérez-Luño & Shanthi Gopalakrishnan, 2016. "How Can Knowledge Structuration Serve Strategic Goals? A Theory For Technology Firms," Working Papers 16.01, Universidad Pablo de Olavide, Department of Business Organization and Marketing (former Department of Business Administration), revised Jun 2016.
    6. Subramanian, Annapoornima M. & Lim, Kwanghui & Soh, Pek-Hooi, 2013. "When birds of a feather don’t flock together: Different scientists and the roles they play in biotech R&D alliances," Research Policy, Elsevier, vol. 42(3), pages 595-612.
    7. Kevin Morrell & Ian Clark, 2010. "Private Equity and the Public Good," Journal of Business Ethics, Springer, vol. 96(2), pages 249-263, October.
    8. repec:eee:respol:v:47:y:2018:i:1:p:158-168 is not listed on IDEAS
    9. repec:eee:tefoso:v:123:y:2017:i:c:p:250-261 is not listed on IDEAS
    10. Shameen Prashantham & Charles Dhanaraj, 2010. "The Dynamic Influence of Social Capital on the International Growth of New Ventures," Journal of Management Studies, Wiley Blackwell, vol. 47(6), pages 967-994, September.
    11. Soh, Pek-Hooi & Subramanian, Annapoornima M., 2014. "When do firms benefit from university–industry R&D collaborations? The implications of firm R&D focus on scientific research and technological recombination," Journal of Business Venturing, Elsevier, vol. 29(6), pages 807-821.

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