This Article Full Text (PDF) References Alert me when this article is cited Alert me if a correction is posted Citation Map Services Email this article to a friend Similar articles in this journal Alert me to new issues of the journal Add to Saved Citations Download to citation manager Request Permissions Request Reprints Add to My Marked Citations Citing Articles Citing Articles via HighWire Citing Articles via Google Scholar Citing Articles via Scopus Google Scholar Articles by Oliver, A. L. Search for Related Content Social Bookmarking                         What's this?

Strategic Alliances and the Learning Life-Cycle of Biotechnology Firms

Department of Sociology and Anthropology, The Hebrew University of Jerusalem, Israel

Strategic alliances in the biotechnology industry are used as an inter-organizational learning device, in addition to their ability to provide financial resources, vertical and horizontal integration facilities, and legitimacy to dedicated biotechnology firms (DBFs). However, despite the advantages associated with strategic alliances, the literature accounts for hazards and disadvantages as well. This paper analyzes the relationship between organizational life-cycle and the formation of strategic alliances based on a population of 554 new biotechnology firms (DBFs) in a 15-year period. Using event history analysis, this study tests two propositions: that the inability of DBFs to form strategic alliances will be associated with organizational death and that firm growth will make it possible to reduce network learning through alliances (exploration stage of learning), allowing the firm to enter a period of internalized learning (exploitation). These propositions are supported by the data. The findings showed that lack of alliances is associated with organizational death, that learning through alliances is not a cumulative process, and that firm life-cycle alliance formation is not linear. Although alliance-based learning is vital to biotechnology firms at the early stages of their formation, when learning is associated with exploration, at later phases of the life-cycle, learning is internally exploited through intrafirm networks. The results also provide some evidence that another phase of external, network based, learning follows.

Key Words: strategic alliances • learning • firm life-cycle • biotechnology

Organization Studies, Vol. 22, No. 3, 467-489 (2001)
DOI: 10.1177/0170840601223004


CiteULike    Complore    Connotea    Del.icio.us    Digg    Reddit    Technorati    Twitter    What's this?

This article has been cited by other articles:

				A. Van Gils and P. S. Zwart Alliance Formation Motives in SMEs: An Explorative Conjoint Analysis Study International Small Business Journal, February 1, 2009; 27(1): 5 - 37. [Abstract] [PDF]

				A. M. Osman-Gani and T. Rockstuhl Antecedents and Consequences of Social Network Characteristics for Expatriate Adjustment and Performance in Overseas Assignments: Implications for HRD Human Resource Development Review, March 1, 2008; 7(1): 32 - 57. [Abstract] [PDF]

				J. Ferdinand and D. Simm Re-theorizing External Learning: Insights from Economic and Industrial Espionage Management Learning, July 1, 2007; 38(3): 297 - 317. [Abstract] [PDF]

				H. Bapuji and M. Crossan From Questions to Answers: Reviewing Organizational Learning Research Management Learning, December 1, 2004; 35(4): 397 - 417. [Abstract] [PDF]

				S. P. Borgatti and P. C. Foster The Network Paradigm in Organizational Research: A Review and Typology Journal of Management, December 1, 2003; 29(6): 991 - 1013. [Abstract] [PDF]