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)
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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
Issue number2
Early online date23 Feb 2017
Publication statusPublished - 1 Apr 2019


ASJC Scopus subject areas

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

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