n Management Dynamics : Journal of the Southern African Institute for Management Scientists - The evolution of alliance formation in biotech firms : an organisational life cycle framework
|Article Title||The evolution of alliance formation in biotech firms : an organisational life cycle framework|
|© Publisher:||Southern African Institute for Management Scientists (SAIMS)|
|Journal||Management Dynamics : Journal of the Southern African Institute for Management Scientists|
|Author||Yong-Sik Hwang and Seung Ho Park|
|Publication Date||Jan 2006|
|Pages||40 - 53|
This study investigates the evolution of strategic alliances in biotech companies according to an organisational life cycle framework. The study focuses on various attributes of alliance formation patterns, including alliance objectives, partner types, alliance modes, and alliance scopes along the stages of the organisational life cycle. The findings show a different pattern of alliance formation and objectives across life cycle stages, and the results indicate that firms are less likely to form alliances in the growth and maturity stages than in the birth stage. In the early stages, firms tend to focus on exploration and non-equity alliances, which then evolve into "exploitation" and "equity" alliances. Firms are also likely to form alliances with partners of a similar strategic scope in the early stages and later form alliances with partners of different strategic scopes. Overall, the results support the idea that firms generally follow sequential decisions with alliance strategies along the evolutionary process of the organisational life cycle.
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