Partner Selection in R&D Collaborations: Effects of Affiliations with Venture Capitalists

Published Online:https://doi.org/10.1287/orsc.2017.1124

References

  • Aboody D, Lev B (2000) Information asymmetry, R&D, and insider gains. J. Finance 55(6):2747–2766.CrossrefGoogle Scholar
  • Adegbesan JA, Higgins MJ (2011) The intra-alliance division of value created through collaboration. Strategic Management J. 32(2):187–211.CrossrefGoogle Scholar
  • Admati AR, Pfleiderer P (1994) Robust financial contracting and the role of venture capitalists. J. Finance 49(2):371–402.CrossrefGoogle Scholar
  • Ahuja G (2000) The duality of collaboration: Inducements and opportunities in the formation of interfirm linkages. Strategic Management J. 21(3):317–343.CrossrefGoogle Scholar
  • Akerlof GA (1970) The market for lemons: Quality uncertainty and the market mechanism. Quart. J. Econom. 84(3):488–500.CrossrefGoogle Scholar
  • Almeida P, Song J, Grant RM (2002) Are firms superior to alliances and markets? An empirical test of cross-border knowledge building. Organ. Sci. 13(2):147–161.LinkGoogle Scholar
  • Alvarez-Garrido E, Dushnitsky G (2016) Are entrepreneurial venture’s innovation rates sensitive to investor complementary assets? Comparing biotech ventures backed by corporate and independent VCs. Strategic Management J. 37(5):819–834.CrossrefGoogle Scholar
  • Amit R, Brander J, Zott C (1998) Why do venture capital firms exist? Theory and Canadian evidence. J. Bus. Venturing 13(6):441–466.CrossrefGoogle Scholar
  • Anand J, Oriani R, Vassolo RS (2010) Alliance activity as a dynamic capability in the face of a discontinuous technological change. Organ. Sci. 21(6):1213–1232.LinkGoogle Scholar
  • Aoki M (2000) Information, Corporate Governance, and Institutional Diversity: Competitiveness in Japan, the USA, and the Transitional Economies (Oxford University Press, Oxford, UK).Google Scholar
  • Arrow KJ (1962) Economic welfare and the allocation of resources for invention. The Rate and Direction of Inventive Activity: Economic and Social Factors (Princeton University Press, Princeton, NJ), 609–626.CrossrefGoogle Scholar
  • Arthurs JD, Busenitz LW (2006) Dynamic capabilities and venture performance: The effects of venture capitalists. J. Bus. Venturing 21(2):195–215.CrossrefGoogle Scholar
  • Baker M, Gompers PA (2003) The determinants of board structure at the initial public offering. J. Law Econom. 46(2):569–598.CrossrefGoogle Scholar
  • Balakrishnan S, Koza MP (1993) Information asymmetry, adverse selection and joint-ventures: Theory and evidence. J. Econom. Behav. Organ. 20(1):99–117.CrossrefGoogle Scholar
  • Beamish PW, Lupton NC (2009) Managing joint ventures. Acad. Management Perspect. 23(2):75–94.CrossrefGoogle Scholar
  • Bonacich P (1987) Power and centrality: A family of measures. Amer. J. Sociol. 92(5):1170–1182.CrossrefGoogle Scholar
  • Busenitz LW, Fiet JO, Moesel DD (2004) Reconsidering the venture capitalists’ “value added” proposition: An interorganizational learning perspective. J. Bus. Venturing 19(6):787–807.CrossrefGoogle Scholar
  • Chang SJ (2004) Venture capital financing, strategic alliances, and the initial public offerings of internet startups. J. Bus. Venturing 19(5):721–741.CrossrefGoogle Scholar
  • Chi T (1994) Trading in strategic resources: Necessary conditions, transaction cost problems, and choice of exchange structure. Strategic Management J. 15(4):271–290.CrossrefGoogle Scholar
  • Chung S, Singh H, Lee K (2000) Complementarity, status similarity and social capital as drivers of alliance formation. Strategic Management J. 21(1):1–22.CrossrefGoogle Scholar
  • Cohen WM, Levinthal DA (1990) Absorptive capacity: A new perspective on learning and innovation. Admin. Sci. Quart. 35(1):128–152.CrossrefGoogle Scholar
  • Colombo MG (2003) Alliance form: A test of the contractual and competence perspectives. Strategic Management J. 24(12):1209–1229.CrossrefGoogle Scholar
  • Cuypers IR, Martin X (2010) What makes and what does not make a real option? A study of equity shares in international joint ventures. J. Internat. Bus. Stud. 41(1):47–69.CrossrefGoogle Scholar
  • Deeds DL, Hill CWL (1996) Strategic alliances and the rate of new product development: An empirical study of entrepreneurial biotechnology firms. J. Bus. Venturing 11(1):41–55.CrossrefGoogle Scholar
  • Dekker HC, Van den Abbeele A (2010) Organizational learning and interfirm control: The effects of partner search and prior exchange experiences. Organ. Sci. 21(6):1233–1250.LinkGoogle Scholar
  • Diestre L, Rajagopalan N (2012) Are all “sharks” dangerous? New biotechnology ventures and partner selection in R&D alliances. Strategic Management J. 33(10):1115–1134.CrossrefGoogle Scholar
  • Dushnitsky G, Lenox MJ (2005) When do incumbents learn from entrepreneurial ventures? Corporate venture capital and investing firm innovation rates. Res. Policy 34(5):615–639.CrossrefGoogle Scholar
  • Dushnitsky G, Shaver JM (2009) Limitations to interorganizational knowledge acquisition: The paradox of corporate venture capital. Strategic Management J. 30(10):1045–1064.CrossrefGoogle Scholar
  • Eisenhardt KM, Schoonhoven CB (1996) Resource-based view of strategic alliance formation: Strategic and social effects in entrepreneurial ventures. Organ. Sci. 7(2):136–150.LinkGoogle Scholar
  • Gans JS, Stern S (2003) The product market and the market for “ideas”: Commercialization strategies for technology entrepreneurs. Res. Policy 32(2):333–350.CrossrefGoogle Scholar
  • Gans JS, Hsu DH, Stern S (2002) When does start-up innovation spur the gale of creative destruction? RAND J. Econom. 33(4):571–586.CrossrefGoogle Scholar
  • Garmaise MJ, Moskowitz TJ (2004) Confronting information asymmetries: Evidence from real estate markets. Rev. Financial Stud. 17(2):405–437.CrossrefGoogle Scholar
  • Geertz C (1978) The bazaar economy: Information and search in peasant marketing. Amer. Econom. Rev. 68(2):28–32.Google Scholar
  • Geringer JM (1991) Strategic determinants of partner selection criteria in international joint ventures. J. Internat. Bus. Stud. 22(1):41–62.CrossrefGoogle Scholar
  • Gilsing V, Nooteboom B, Vanhaverbeke W, van den Oord A (2008) Network embeddedness and the exploration of novel technologies: Technological distance, betweenness centrality and density. Res. Policy 37(10):1717–1731.CrossrefGoogle Scholar
  • Gomes-Casseres B, Hagedoorn J, Jaffe AB (2006) Do alliances promote knowledge flows? J. Financial Econom. 80(1):5–33.CrossrefGoogle Scholar
  • Gompers P (1995) Optimal investment, monitoring, and the staging of venture capital. J. Finance 50(5):1461–1489.CrossrefGoogle Scholar
  • Gompers P, Lerner J (2001) The venture capital revolution. J. Econom. Perspect. 15(2):145–168.CrossrefGoogle Scholar
  • Gompers P, Lerner J (2004) The Venture Capital Cycle (MIT Press, Cambridge, MA).Google Scholar
  • Gulati R (1995a) Does familiarity breed trust? The implications of repeated ties for contractual choice in alliances. Acad. Management J. 38(1):85–112.CrossrefGoogle Scholar
  • Gulati R (1995b) Social structure and alliance formation patterns: A longitudinal analysis. Admin. Sci. Quart. 40(4):619–652.CrossrefGoogle Scholar
  • Gulati R (1999) Network location and learning: The influence of network resources and firm capabilities on alliance formation. Strategic Management J. 20(5):397–420.CrossrefGoogle Scholar
  • Gulati R, Gargiulo M (1999) Where do interorganizational networks come from? Amer. J. Sociol. 104(5):1439–1493.CrossrefGoogle Scholar
  • Gulati R, Higgins MC (2003) Which ties matter when? The contingent effects of interorganizational partnerships on IPO success. Strategic Management J. 24(2):127–144.CrossrefGoogle Scholar
  • Gulati R, Westphal JD (1999) Cooperative or controlling? The effects of CEO-board relations and the content of interlocks on the formation of joint ventures. Admin. Sci. Quart. 44(3):473–506.CrossrefGoogle Scholar
  • Hagedoorn J (2002) Inter-firm R&D partnerships: An overview of major trends and patterns since 1960. Res. Policy 31(4):477–492.CrossrefGoogle Scholar
  • Hagedoorn J, Lorenz-Orlean S, van Kranenburg H (2009) Inter-firm technology transfer: Partnership-embedded licensing or standard licensing agreements? Indust. Corporate Change 18(3):529–550.CrossrefGoogle Scholar
  • Hall BH, Jaffe A, Trajtenberg M (2005) Market value and patent citations. RAND J. Econom. 36(1):16–38.Google Scholar
  • Hayashi F (2000) Econometrics (Princeton University Press, Princeton, NJ).Google Scholar
  • Hellmann T, Puri M (2002) Venture capital and the professionalization of start-up firms: Empirical evidence. J. Finance 57(1):169–197.CrossrefGoogle Scholar
  • Higgins MJ, Rodriguez D (2006) The outsourcing of R&D through acquisitions in the pharmaceutical industry. J. Financial Econom. 80(2):351–383.CrossrefGoogle Scholar
  • Hitt MA, Ahlstrom D, Dacin MT, Levitas E, Svobodina L (2004) The institutional effects on strategic alliance partner selection in transition economies: China vs. Russia. Organ. Sci. 15(2):173–185.LinkGoogle Scholar
  • Hoang H, Rothaermel FT (2005) The effect of general and partner-specific alliance experience on joint R&D project performance. Acad. Management J. 48(2):332–345.CrossrefGoogle Scholar
  • Hochberg YV, Ljungqvist A, Lu Y (2007) Whom you know matters: Venture capital networks and investment performance. J. Finance 62(1):251–301.CrossrefGoogle Scholar
  • Hoetker G (2007) The use of logit and probit models in strategic management research: Critical issues. Strategic Management J. 28(4):331–343.CrossrefGoogle Scholar
  • Hsu DH (2006) Venture capitalists and cooperative start-up commercialization strategy. Management Sci. 52(2):204–219.LinkGoogle Scholar
  • Jackson III WE, Bates T, Bradford WD (2012) Does venture capitalist activism improve investment performance? J. Bus. Venturing 27(3):343–354.CrossrefGoogle Scholar
  • Jaffe AB (1986) Technological opportunity and spillovers of R&D: Evidence from firms’ patents, profits, and market value. Amer. Econom. Rev. 76(5):984–1001.Google Scholar
  • Jaffe AB (1989) Real effects of academic research. Amer. Econom. Rev. 79(5):957–970.Google Scholar
  • Jaffe AB, Trachtenberg M, Henderson R (1993) Geographic localization of knowledge spillovers as evidenced by patent citations. Quart. J. Econom. 108(3):577–598.CrossrefGoogle Scholar
  • Kaplan SN, Stromberg P (2003) Financial contracting theory meets the real world: An empirical analysis of venture capital contracts. Rev. Econom. Stud. 70(2):281–315.CrossrefGoogle Scholar
  • King G, Zeng L (2001) Logistic regression in rare events data. Soc. Political Methodology 12(54):137–163.Google Scholar
  • Kossinets G, Watts D (2009) Origins of homophily in an evolving social network. Amer. J. Sociol. 115(2):405–450.CrossrefGoogle Scholar
  • Lavie D, Rosenkopf L (2006) Balancing exploration and exploitation in alliance formation. Acad. Management J. 49(4):797–818.CrossrefGoogle Scholar
  • Lerner J (1995) Venture capitalists and the oversight of private firms. J. Finance 50(1):301–318.CrossrefGoogle Scholar
  • Lerner J, Merges RP (1998) The control of technology alliances: An empirical analysis of the biotechnology industry. J. Indust. Econom. 46(2):125–156.CrossrefGoogle Scholar
  • Levitas E, McFadyen MA (2009) Managing liquidity in research-intensive firms: Signaling and cash flow effects of patents and alliance activities. Strategic Management J. 30(6):659–678.CrossrefGoogle Scholar
  • Li D, Eden L, Hitt MA, Ireland RD (2008) Friends, acquaintances, or strangers? Partner selection in R&D alliances. Acad. Management J. 51(2):315–334.CrossrefGoogle Scholar
  • Lindsey L (2008) Blurring firm boundaries: The role of venture capital in strategic alliances. J. Finance 63(3):1137–1168.CrossrefGoogle Scholar
  • Luo Y (1997) Partner selection and venturing success: The case of joint ventures with firms in the People’s Republic of China. Organ. Sci. 8(6):648–662.LinkGoogle Scholar
  • Milgrom P, Stokey N (1982) Information, trade and common knowledge. J. Econom. Theory 26(1):17–27.CrossrefGoogle Scholar
  • Mitsuhashi H, Greve HR (2009) A matching theory of alliance formation and organizational success: Complementarity and compatibility. Acad. Management J. 52(5):975–995.CrossrefGoogle Scholar
  • Mowery DC, Oxley JE, Silverman BS (1996) Strategic alliances and interfirm knowledge transfer. Strategic Management J. 17(S2):77–91.CrossrefGoogle Scholar
  • Mowery DC, Oxley JE, Silverma BS (1998) Technological overlap and interfirm cooperation: Implications for the resource-based view of the firm. Res. Policy 27(5):507–523.CrossrefGoogle Scholar
  • Nicholson S, Danzon PM, McCullough J (2005) Biotech-pharma alliances as a signal of asset and firm quality. J. Bus. 78(4):1433–1464.CrossrefGoogle Scholar
  • Oxley JE (1997) Appropriability hazards and governance in strategic alliances: A transaction cost approach. J. Law, Econom., Organ. 13(2):387–409.CrossrefGoogle Scholar
  • Ozmel U, Reuer JJ, Gulati R (2013) Signals across multiple networks: How venture capital and alliance networks affect interorganizational collaboration. Acad. Management J. 56(3):852–866.CrossrefGoogle Scholar
  • Pisano GP (1990) The R&D boundaries of the firm: An empirical analysis. Admin. Sci. Quart. 35(1):153–176.CrossrefGoogle Scholar
  • Powell WW, Koput KW, Smith-Doerr L (1996) Interorganizational collaboration and the locus of innovation: Networks of learning in biotechnology. Admin. Sci. Quart. 41(1):116–145.CrossrefGoogle Scholar
  • Ragozzino R, Reuer JJ (2007) Initial public offerings and the acquisition of entrepreneurial firms. Strategic Organ. 5(2):155–176.CrossrefGoogle Scholar
  • Rangan S (2000) The problem of search and deliberation in economic action: When social networks really matter. Acad. Management Rev. 25(4):813–828.CrossrefGoogle Scholar
  • Reuer JJ, Ragozzino R (2012) The choice between joint ventures and acquisitions: Insights from signaling theory. Organ. Sci. 23(4):1175–1190.LinkGoogle Scholar
  • Reuer JJ, Ragozzino R (2014) Signals and international alliance formation: The roles of affiliations and international activities. J. Internat. Bus. Stud. 45(3):321–337.CrossrefGoogle Scholar
  • Reuer JJ, Tong W, Wu CW (2012) A signaling theory of acquisition premiums: Evidence from IPO targets. Acad. Management J. 55(3):667–683.CrossrefGoogle Scholar
  • Ring PS, Doz YL, Olk PM (2005) Managing formation processes in R&D consortia. California Management Rev. 47(4):137–156.CrossrefGoogle Scholar
  • Robinson DT, Stuart TE (2007) Financial contracting in biotech strategic alliances. J. Law Econom. 50(3):559–596.CrossrefGoogle Scholar
  • Roijakkers N, Hagedoorn J (2006) Inter-firm RD partnering in pharmaceutical biotechnology since 1975: Trends, patterns, and networks. Res. Policy 35(3):431–446.CrossrefGoogle Scholar
  • Rosenkopf L, Almeida P (2003) Overcoming local search through alliances and mobility. Management Sci. 49(6):751–766.LinkGoogle Scholar
  • Rosenkopf L, Nerkar A (2001) Beyond local search: Boundary-spanning, exploration, and impact in the optical disk industry. Strategic Management J. 22(4):287–306.CrossrefGoogle Scholar
  • Rothaermel FT, Deeds DL (2004) Exploration and exploitation alliances in biotechnology: A system of new product development. Strategic Management J. 25(3):201–221.CrossrefGoogle Scholar
  • Rothaermel FT, Boeker W (2008) Old technology meets new technology: Complementarities, similarities, and alliance formation. Strategic Management J. 29(1):47–77.CrossrefGoogle Scholar
  • Ruhnka JC, Feldman HD, Dean TJ (1992) The “living dead” phenomenon in venture capital investments. J. Bus. Venturing 7(2):137–155.CrossrefGoogle Scholar
  • Sahlman WA (1990) The structure and governance of venture-capital organizations. J. Financial Econom. 27(2):473–521.CrossrefGoogle Scholar
  • Sampson RC (2007) RD alliances and firm performance: The impact of technological diversity and alliance organization on innovation. Acad. Management J. 50(2):364–386.CrossrefGoogle Scholar
  • Sapienza H (1992) When do venture capitalists add value? J. Bus. Venturing 7(1):9–27.CrossrefGoogle Scholar
  • Schilling MA (2009) Understanding the alliance data. Strategic Management J. 30(3):233–260.CrossrefGoogle Scholar
  • Shah RH, Swaminathan V (2008) Factors influencing partner selection in strategic alliances: The moderating role of alliance context. Strategic Management J. 29(5):471–494.CrossrefGoogle Scholar
  • Shan W (1990) An empirical analysis of organizational strategies by entrepreneurial high-technology firms. Strategic Management J. 11(2):129–139.CrossrefGoogle Scholar
  • Shane S, Stuart T (2002) Organizational endowments and the performance of university start-ups. Management Sci. 48(1):154–170.LinkGoogle Scholar
  • Sleptsov A, Anand J, Vasudeva G (2013) Relational configurations with information intermediaries: The effect of firm-investment bank ties on expected acquisition performance. Strategic Management J. 34(8):957–977.CrossrefGoogle Scholar
  • Sorenson O, Stuart TE (2001) Syndication networks and the spatial distribution of venture capital investments. Amer. J. Sociol. 106(6):1546–1588.CrossrefGoogle Scholar
  • Stinchcombe AL (1965) Social structure of organizations. March JG, ed. Handbook of Organizations (Rand McNally, Chicago), 142–193.Google Scholar
  • Stuart TE (1998) Network positions and propensities to collaborate: An investigation of strategic alliance formation in a high-technology industry. Admin. Sci. Quart. 43(3):668–698.CrossrefGoogle Scholar
  • Stuart TE (2000) Interorganizational alliances and the performance of firms: A study of growth and innovation rates in a high-technology industry. Strategic Management J. 21(8):791–811.CrossrefGoogle Scholar
  • Stuart TE, Hoang H, Hybels RC (1999) Interorganizational endorsements and the performance of entrepreneurial ventures. Admin. Sci. Quart. 44(2):315–349.CrossrefGoogle Scholar
  • Tallman SB, Phene A (2007) Leveraging knowledge across geographic boundaries. Organ. Sci. 18(2):252–260.LinkGoogle Scholar
  • Tallman SB, Shenkar O (1994) A managerial decision model of international cooperative venture formation. J. Internat. Bus. Stud. 25(1):91–113.CrossrefGoogle Scholar
  • Teece DJ (1986) Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy. Res. Policy 15(6):285–305.CrossrefGoogle Scholar
  • Teece DJ (1996) Firm organization, industrial structure, and technological innovation. J. Econom. Behav. Organ. 31(2):193–224.CrossrefGoogle Scholar
  • Vanhaverbeke W, Duysters G, Noorderhaven N (2002) External technology sourcing through alliances or acquisitions: An analysis of the application-specific integrated circuits industry. Organ. Sci. 13(6):714–733.LinkGoogle Scholar
  • Vanneste BS, Puranam P (2010) Repeated interactions and contractual detail: Identifying the learning effect. Organ. Sci. 21(1):186–201.LinkGoogle Scholar
  • Vassolo R, Anand J, Folta T (2004) Non-additivity in portfolios of exploration activities: A real options-based analysis of equity alliances in biotechnology. Strategic Management J. 25(11):1045–1061.CrossrefGoogle Scholar
  • Villalonga B, McGahan AM (2004) The choice among acquisitions, alliances, and divestitures. Strategic Management J. 26(13):1183–1208.CrossrefGoogle Scholar
  • Wooldridge JM (2002) Econometric Analysis of Cross Section and Panel Data (MIT Press, Cambridge, MA).Google Scholar
  • Zaheer A, Hernandez E, Banerjee S (2010) Prior alliances with targets and acquisition performance in knowledge-intensive industries. Organ. Sci. 21(5):1072–1091.LinkGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.