Xia, Tianjiao and Roper, Stephen (2008) From capability to connectivity - Absorptive capacity and exploratory alliances in biopharmaceutical firms : A US-Europe comparison. Technovation, Volume 28 (Number 11). pp. 776-785. ISSN 0166-4972

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Abstract

In this paper, we explore the relationship between aspects of firms' potential absorptive capacity (PACAP) on their involvement in exploratory alliances. Our study is based on survey data from firms in the US and European (the UK, Germany, France and Ireland) biopharmaceutical sectors. We use zero inflated negative binomial (ZINB) models to capture the number of exploratory alliances in which firms are engaged, and find that the assimilation dimension of PACAP is significantly more important than the acquisition dimension. More specifically, we find that skill levels and continuous R&D play an important role in determining biopharmaceutical firms' exploratory alliance activity, while R&D intensity proves relatively unimportant. Our results also highlight differences between the determinants of alliance behaviour in the US and Europe: in the US firms' skill levels prove more significant, while in Europe continuity of R&D proves more significant. Commonalities are also observed, however, with firms' strategic focus and an inverted 'U' shaped relationship between firm size and alliance engagement evident in both areas. (C) 2008 Published by Elsevier Ltd.

Item Type:	Journal Item
Subjects:	T Technology H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions:	Faculty of Social Sciences > Warwick Business School > Centre for Small & Medium-Sized Enterprises Faculty of Social Sciences > Warwick Business School > Entrepreneurship, Innovation & Management Faculty of Social Sciences > Warwick Business School
Library of Congress Subject Headings (LCSH):	Absorptive capacity (Economics) -- United States, Absorptive capacity (Economics) -- Europe, Strategic alliances (Business) -- United States, Strategic alliances (Business) -- Europe, Pharmaceutical industry -- United States, Pharmaceutical industry -- Europe
Journal or Publication Title:	Technovation
Publisher:	Elsevier Ltd.
ISSN:	0166-4972
Date:	November 2008
Volume:	Volume 28
Number:	Number 11
Number of Pages:	10
Page Range:	pp. 776-785
Identification Number:	10.1016/j.technovation.2008.03.007
Status:	Peer Reviewed
Publication Status:	Published
Access rights to Published version:	Restricted or Subscription Access
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URI:	http://wrap.warwick.ac.uk/id/eprint/29131

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