Does the Order of Partner Selection Matter? Evidence from the Bio-Pharmaceutical Industry - Dissertation Executive Summary
Ewing Marion Kauffman Foundation Research Paper
13 Pages Posted: 20 Sep 2013
Date Written: April 1, 2012
I investigate how entrepreneurs’ choice of first partner influences the likelihood and type second partner and the effect of partner order on outcomes for new ventures in the bio-pharmaceutical industry. Ventures match up with generic resource firms as their first choice partners, while specialized resource partners prefer to wait till the underlying technology matures. Generic resource first partners enable selection of specialized second partners while specialized first partners inhibit the likelihood of a second partner. Identifying the right order in partner selection helps entrepreneurs access capabilities from multiple and diverse sets of partners improving their performance and financial growth.
Keywords: entrepreneurship, partnering, transaction costs, partner order, firm formation, bio-pharmaceutical
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