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Joint venture research and development activity: an analysis of the international biotechnology industry

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  • Richards, Malika
  • De Carolis, Donna Marie

Abstract

The research question we investigate is under what conditions will joint ventures engage in research and development (R&D) activity within the context of a global, high-technology environment. To explore this question, we examine the collective impact of initial conditions that influence the presence of R&D activity among joint ventures (JVs) formed in the global biotechnology industry. Our investigation is driven by two streams of research in joint ventures: transaction costs and initial conditions. Specifically, we examine whether business relatedness, cultural relatedness, country risk, and prior joint venture experience are related to R&D activity in joint ventures. Our results show that cultural relatedness and country risk factors do matter when it comes to R&D activity in biotechnology joint ventures. On the other hand, business similarities and prior JV experience between the parents do not seem to be as important as one might expect.

Suggested Citation

  • Richards, Malika & De Carolis, Donna Marie, 2003. "Joint venture research and development activity: an analysis of the international biotechnology industry," Journal of International Management, Elsevier, vol. 9(1), pages 33-49.
    • Handle: RePEc:eee:intman:v:9:y:2003:i:1:p:33-49
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    2. López-Duarte, Cristina & González-Loureiro, Miguel & Vidal-Suárez, Marta M. & González-Díaz, Belén, 2016. "International strategic alliances and national culture: Mapping the field and developing a research agenda," Journal of World Business, Elsevier, vol. 51(4), pages 511-524.
    3. Oh, Yoojin & Yoo, Nina, 2022. "Effective cooperation modes based on cultural and market similarities in interfirm relationships," Journal of International Management, Elsevier, vol. 28(1).
    4. Byung Il Park & Axèle Giroud & Keith W. Glaister, 2008. "Acquisition of managerial knowledge from foreign parents: evidence from Korean joint ventures," Asia Pacific Business Review, Taylor & Francis Journals, vol. 15(4), pages 527-545, October.
    5. Jae-Seung Han & Sang-Yong Lee, 2013. "The impact of technology transfer contract on a firm’s market value in Korea," The Journal of Technology Transfer, Springer, vol. 38(5), pages 651-674, October.
    6. Choi, Jeongho & Yeniyurt, Sengun, 2015. "Contingency distance factors and international research and development (R&D), marketing, and manufacturing alliance formations," International Business Review, Elsevier, vol. 24(6), pages 1061-1071.
    7. Kim, YoungJun & Vonortas, Nicholas S., 2006. "Technology licensing partners," Journal of Economics and Business, Elsevier, vol. 58(4), pages 273-289.
    8. Byung Park, 2010. "What matters to managerial knowledge acquisition in international joint ventures? High knowledge acquirers versus low knowledge acquirers," Asia Pacific Journal of Management, Springer, vol. 27(1), pages 55-79, March.
    9. Bryan, Stephen & Nash, Robert & Patel, Ajay, 2015. "The effect of cultural distance on contracting decisions: The case of executive compensation," Journal of Corporate Finance, Elsevier, vol. 33(C), pages 180-195.
    10. Pascal Nguyen & Samia Belaounia, 2020. "Cultural Distance and Payment Method in French Cross-Border Acquisitions [Distancia cultural y forma de pago en adquisiciones transfronterizas francesas]," Post-Print hal-02897388, HAL.
    11. Yung-Chang Hsiao & Chung-Jen Chen & Bou-Wen Lin & Chia-I Kuo, 2017. "Resource alignment, organizational distance, and knowledge transfer performance: the contingency role of alliance form," The Journal of Technology Transfer, Springer, vol. 42(3), pages 635-653, June.
    12. Richards, Malika & Yang, Yi, 2007. "Determinants of foreign ownership in international R&D joint ventures: Transaction costs and national culture," Journal of International Management, Elsevier, vol. 13(2), pages 110-130, June.

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