Multiple Performances, Aspiration Levels and Partnering Behavior: The Case of the Pharmaceutical Industry

26 Pages Posted: 24 Apr 2018

See all articles by Daniela P. Blettner

Daniela P. Blettner

Simon Fraser University (SFU) - Beedie School of Business

Francesco Di Lorenzo

Copenhagen Business School

Date Written: August 2017

Abstract

Our paper explores how multiple performances (financial and innovative) and related aspiration levels explain changes in the partnering patterns of 144 pharmaceutical firms during the period 1990 to 2003. Our results confirm the central idea that firms exhibit different risk profiles and related strategic behavior, depending on the objectives based on performance feedback mechanisms. When financial performance deviates (either above or below) from aspirations, pharmaceutical firms decrease the extent of change in partnering patterns; when innovative performance deviates (either above or below) from aspirations, pharmaceutical firms exhibit increase in the extent of change in partnering patterns. Furthermore, innovative performance in relation to financial performance functions as risk-adversity catalyst increasing the extent of risky strategic behavior, such as change to the alliances and acquisitions portfolio.

Keywords: multiple performances, innovation, partnering behavior, aspiration levels

JEL Classification: M10

Suggested Citation

Blettner, Daniela P. and Di Lorenzo, Francesco, Multiple Performances, Aspiration Levels and Partnering Behavior: The Case of the Pharmaceutical Industry (August 2017). Available at SSRN: https://ssrn.com/abstract=3164863 or http://dx.doi.org/10.2139/ssrn.3164863

Daniela P. Blettner

Simon Fraser University (SFU) - Beedie School of Business ( email )

8888 University Drive
Burnaby, British Columbia V5A1S6
Canada

Francesco Di Lorenzo (Contact Author)

Copenhagen Business School ( email )

Kilevej 14A
Frederiksberg C, Copenhagen DK - 2000
Denmark

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