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Valuing Strategic Alliances in the Pharmaceutical/Biotechnology Industry

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  • McCulloch, Kathryn
  • Jackson, Randy
  • Ng, Desmond W.

Abstract

In an era of rapid and changing technological advances, a firm's survival and growth depends on its' ability to introduce products to the market. Since a firm's growth and survival depends on its' ability to develop products and services over time (Penrose, 1959), the question posed by this study is what determines a firm's ability to introduce products to market? In this study, a firm's ability to introduce product to markets are influenced by its' "absorptive capacity" to identify and internalize the resource benefits of its' alliance partners. Such an integrated view is absent in firm level and strategic alliance studies of product development. A conceptual model of firm product introductions is developed and empirically tested. Results generally support the hypotheses of this study.

Suggested Citation

  • McCulloch, Kathryn & Jackson, Randy & Ng, Desmond W., 2005. "Valuing Strategic Alliances in the Pharmaceutical/Biotechnology Industry," 2005 Annual meeting, July 24-27, Providence, RI 19537, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea05:19537
    DOI: 10.22004/ag.econ.19537
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    References listed on IDEAS

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