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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.

Suggested Citation

  • 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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    References listed on IDEAS

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    Cited by:

    1. Galloway, Tera L. & Miller, Douglas R. & Sahaym, Arvin & Arthurs, Jonathan D., 2017. "Exploring the innovation strategies of young firms: Corporate venture capital and venture capital impact on alliance innovation strategy," Journal of Business Research, Elsevier, vol. 71(C), pages 55-65.
    2. repec:eee:tefoso:v:122:y:2017:i:c:p:186-195 is not listed on IDEAS
    3. 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.
    4. Staniewski, Marcin W. & Szopiński, Tomasz & Awruk, Katarzyna, 2016. "Setting up a business and funding sources," Journal of Business Research, Elsevier, vol. 69(6), pages 2108-2112.
    5. Baraldi, Enrico & Ingemansson Havenvid, Malena, 2016. "Identifying new dimensions of business incubation: A multi-level analysis of Karolinska Institute's incubation system," Technovation, Elsevier, vol. 50, pages 53-68.

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