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Technological Knowledge Base, R&D Organization Structure and Alliance Formation: Evidence from the Biopharmaceutical Industry

Author

Listed:
  • Jing Zhang

    (Institute for Entrepreneurship and Enterprise Development - Lancaster University)

  • Charles Baden-Fuller

    (Cass Business School - Cass Business School)

  • Vincent Mangematin

    (GAEL - Laboratoire d'Economie Appliquée = Grenoble Applied Economics Laboratory - UPMF - Université Pierre Mendès France - Grenoble 2 - INRA - Institut National de la Recherche Agronomique - CNRS - Centre National de la Recherche Scientifique, MTS - Management Technologique et Strategique - EESC-GEM Grenoble Ecole de Management)

Abstract

We explore how an incumbent firm's internal knowledge and organization structure influences its strategic alliance formation. We propose that the firm's knowledge breadth and the centrality of its R&D organization structure positively influence its absorptive capacity, and consequently, its propensity to form strategic alliances. We also argue that the centrality of the R&D organization structure may be a substitute for the breadth of the knowledge base. We validate our ideas using data on 2647 strategic alliances formed over the period of 1993–2002 by 43 major biopharmaceutical firms in the U.S. and Europe. Our discussion focuses on the application of the knowledge-based view of the firm to strategic alliance research. The implications for public policy in the biopharmaceutical industry are also emphasized.

Suggested Citation

  • Jing Zhang & Charles Baden-Fuller & Vincent Mangematin, 2007. "Technological Knowledge Base, R&D Organization Structure and Alliance Formation: Evidence from the Biopharmaceutical Industry," Grenoble Ecole de Management (Post-Print) hal-00424512, HAL.
    • Handle: RePEc:hal:gemptp:hal-00424512
    DOI: 10.1016/j.respol.2007.02.015
    Note: View the original document on HAL open archive server: http://hal.grenoble-em.com/hal-00424512
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