The Determinants of Organizational Form in the Biotechnology Industry: An Integrative Organizational Economics Framework

The inherently high level of uncertainty involved in alliances and the great discrepancy between the alliance partners' respective size and perspectives on the alliance were found to have an important impact on how client firms invested in R&D firms. Another important finding is that informal contracting mechanisms like reputation effects and repeated contracting seem to have complementary effects on the choice of organizational form, particularly in the magnitude of equity investment, rather than substituting for each other. Furthermore, the nature of equity investment in the pharmaceutical-biotechnology alliances in this sample suggests that investments are not made so much for equity participation, but as a financing method, and possibly as a signal of commitment. Lastly, the informal mechanisms seem to be byproducts of doing business, and thus seem to have little impact on the margin, but perhaps with the accumulation from many prior alliances and goodwill, may have some impact.

Name thesis:degree_name

Ph.D.

Level thesis:degree_level

Dissertation

Discipline thesis:degree_discipline

Business Administration

Grantor

University of Illinois at Urbana-Champaign

Year dc:date

2004

Author dc:creator

• Kim, Jong Wook

Contributors dc:contributor

• Mahoney, Joseph T.

• Business Administration, Management

Language dc:language

eng

Identifier

(MiAaPQ)AAI3130954

OAI identifier oai:identifier

oai:www.ideals.illinois.edu:2142/84535