The strategic alliance of the biotechnology firm

Koyin Chang

Applied Economics, 2008, vol. 40, issue 23, 3089-3100

Abstract: This article applies the relevant theories of firm organization and inter-firm relationships in the high-tech environment to explain the institutional reasons that firms choose between internal or external approaches. Particularly, this study tries to understand to what extent and in what way strategic alliances have impacts on individual firms' organizational structure, financial structure and firms' activities. Also it tries to find out what type of firms tend to benefit most from alliances, and thus use more inter-firm agreements. The theoretical findings are that due to liquidity constraint and asymmetric information reasons, young, research-intensive firms need to use more alliances to survive in the fast changing high-technology industry. The empirical analysis employs 3 year panel data and finds that the results are consistent with the theoretical predictions.

Date: 2008
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Citations: View citations in EconPapers (2)

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DOI: 10.1080/00036840600994104

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