Abstract:
Even though high-tech ventures are acquired by industry incumbents, the phenomenon remains understudied, especially from the venture's perspective. By examining a sample ...View moreMetadata
Abstract:
Even though high-tech ventures are acquired by industry incumbents, the phenomenon remains understudied, especially from the venture's perspective. By examining a sample of 1286 entrepreneurial biotech firms and their partnerships over a 25 year timeframe (1990–2015), we find that the high-tech venture's knowledge partnerships influence its acquisition prospects, and in unique ways. Technological knowhow combines with the firm's alliance partnerships with industry incumbents, influencing its acquisition likelihood. On their own, exploitative (explorative) partnerships have a positive (negative) impact on acquisition likelihood. Yet, in combination with the firm's technological knowhow, both types of partnerships significantly improve the venture's acquisition prospects.
Published in: IEEE Transactions on Engineering Management ( Volume: 71)