Evaluation of Core and Symbolic Capabilities During Due-Diligence Processes in New Biotechnology Firms

Galit Klein ()
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Galit Klein: Department of Business Administration, Kinneret Academic College, Bar-Ilan University, Jordan Valley, Israel

International Journal of Innovation and Technology Management (IJITM), 2014, vol. 11, issue 06, 1-20

Abstract: This study discusses the role of core and symbolic capabilities during due-diligence processes when investing in companies in turbulent fields such as the biotechnology industry. The results indicate that investors' evaluations are hierarchical and are based on two premises. First, investors look for core capabilities — the characteristics that signal the potential for future success. They then search for symbolic elements, such as reputation, to confirm their decisions. The study expands earlier models of investors' evaluation processes. It also offers new insights for entrepreneurs of biotechnology firms.

Keywords: Investments; core capabilities; symbolic capabilities; biotechnology companies; evaluation; venture capital; entrepreneurs; investors; due-diligence process (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (3)

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DOI: 10.1142/S0219877014500436

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