Alliances and survival of new biopharmaceutical ventures in the wake of the global financial crisis

Tianjiao Xia, Dimo Dimov

Research output: Contribution to journalArticle

1 Citation (Scopus)
10 Downloads (Pure)

Abstract

Engaging in exploration and exploitation is essential to business survival and performance. While firms manage exploration and exploitation alliances for the long-term, how prepared are they for sudden shocks in the short-term? We address this question in the context of a unique and opportune natural experiment associated with the 2008 financial crisis. Our analysis of 155 new biopharmaceutical ventures over a seven-year period suggests that exploration alliances – with a long-term orientation – make a firm more vulnerable to external shocks. In contrast, exploitation alliances as well as a balance between exploration and exploitation alliances – which underlie short-term performance – enable the firm to sustain external shocks.
Original languageEnglish
Pages (from-to)362-385
Number of pages24
JournalJournal of Small Business Management
Volume57
Issue number2
Early online date23 Feb 2017
DOIs
Publication statusPublished - 1 Apr 2019

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Industry
Experiments
Venture
Global financial crisis
Biopharmaceuticals
Alliances
Exploration and exploitation
External shocks
Exploitation
Long-term orientation
Natural experiment
Business survival
Business performance
Financial crisis

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Strategy and Management
  • Management of Technology and Innovation

Cite this

Alliances and survival of new biopharmaceutical ventures in the wake of the global financial crisis. / Xia, Tianjiao; Dimov, Dimo.

In: Journal of Small Business Management, Vol. 57, No. 2, 01.04.2019, p. 362-385.

Research output: Contribution to journalArticle

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