Governance and resource interaction in networks. The role of venture capital in a biotech start-up
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.
If 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.
References listed on IDEAS
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.:
- Sapienza, Harry J. & Manigart, Sophie & Vermeir, Wim, 1996. "Venture capitalist governance and value added in four countries," Journal of Business Venturing, Elsevier, vol. 11(6), pages 439-469, November.
- Jain, Bharat A., 2001. "Predictors of performance of venture capitalist-backed organizations," Journal of Business Research, Elsevier, vol. 52(3), pages 223-233, June.
- Timmons, Jeffry A. & Bygrave, William D., 1986. "Venture capital's role in financing innovation for economic growth," Journal of Business Venturing, Elsevier, vol. 1(2), pages 161-176.
- Harrison, Debbie & Waluszewski, Alexandra, 2008. "The development of a user network as a way to re-launch an unwanted product," Research Policy, Elsevier, vol. 37(1), pages 115-130, February.
- O'Sullivan, Mary, 2000. "The Innovative Enterprise and Corporate Governance," Cambridge Journal of Economics, Oxford University Press, vol. 24(4), pages 393-416, July.
- Lind, Johnny & Stromsten, Torkel, 2006. "When do firms use different types of customer accounting?," Journal of Business Research, Elsevier, vol. 59(12), pages 1257-1266, November.
- Baraldi, Enrico & Waluszewski, Alexandra, 2005. "Information technology at IKEA: an "open sesame" solution or just another type of facility?," Journal of Business Research, Elsevier, vol. 58(9), pages 1251-1260, September.
- Halinen, Aino & Törnroos, Jan-Åke, 1998. "The role of embeddedness in the evolution of business networks," Scandinavian Journal of Management, Elsevier, vol. 14(3), pages 187-205, March.
- Amit, Raphael & Brander, James & Zott, Christoph, 1998. "Why do venture capital firms exist? theory and canadian evidence," Journal of Business Venturing, Elsevier, vol. 13(6), pages 441-466, November.
- Hakansson, Hakan & Lind, Johnny, 2004. "Accounting and network coordination," Accounting, Organizations and Society, Elsevier, vol. 29(1), pages 51-72, January.
- Fama, Eugene F & Jensen, Michael C, 1983. "Separation of Ownership and Control," Journal of Law and Economics, University of Chicago Press, vol. 26(2), pages 301-25, June.
- Fried, Vance H. & Bruton, Garry D. & Hisrich, Robert D., 1998. "Strategy and the board of directors in venture capital-backed firms," Journal of Business Venturing, Elsevier, vol. 13(6), pages 493-503, November.
- Davila, Tony, 2005. "An exploratory study on the emergence of management control systems: formalizing human resources in small growing firms," Accounting, Organizations and Society, Elsevier, vol. 30(3), pages 223-248, April.
- Smith, Delmonize A. & Lohrke, Franz T., 2008. "Entrepreneurial network development: Trusting in the process," Journal of Business Research, Elsevier, vol. 61(4), pages 315-322, April.
- Walter Powell & Kenneth Koput & James Bowie & Laurel Smith-Doerr, 2002. "The Spatial Clustering of Science and Capital: Accounting for Biotech Firm-Venture Capital Relationships," Regional Studies, Taylor & Francis Journals, vol. 36(3), pages 291-305.
- Armen A. Alchian & Harold Demsetz, 1971.
"Production, Information Costs and Economic Organizations,"
UCLA Economics Working Papers
10A, UCLA Department of Economics.
- Alchian, Armen A & Demsetz, Harold, 1972. "Production , Information Costs, and Economic Organization," American Economic Review, American Economic Association, vol. 62(5), pages 777-95, December.
- Sahlman, William A., 1990. "The structure and governance of venture-capital organizations," Journal of Financial Economics, Elsevier, vol. 27(2), pages 473-521, October.
- Lounsbury, Michael, 2008. "Institutional rationality and practice variation: New directions in the institutional analysis of practice," Accounting, Organizations and Society, Elsevier, vol. 33(4-5), pages 349-361.
When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:65:y:2012:i:2:p:232-244. See general information about how to correct material in RePEc.
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.