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EMPIRICAL ESSAYS ON ALLIANCES AND INNOVATION IN THE BIOPHARMACEUTICAL INDUSTRY by Luis Diestre A Dissertation Presented to the FACULTY OF THE GRADUATE SCHOOL UNIVERSITY OF SOUTHERN CALIFORNIA In Partial Fulfillment of the Requirements for the Degree DOCTOR OF PHILOSOPHY (BUSINESS ADMINISTRATION) August 2009 Copyright 2009 Luis Diestre
Object Description
Title | Empirical essays on alliances and innovation in the biopharmaceutical industry |
Author | Diestre, Luis |
Author email | diestre@usc.edu; luisdiestre@hotmail.com |
Degree | Doctor of Philosophy |
Document type | Dissertation |
Degree program | Business Administration |
School | Marshall School of Business |
Date defended/completed | 2009-05-05 |
Date submitted | 2009 |
Restricted until | Unrestricted |
Date published | 2009-08-05 |
Advisor (committee chair) | Rajagopalan, Nandini |
Advisor (committee member) |
Dutta, Shantanu Mayer, Kyle Moon, Hyungsik Roger |
Abstract | In this dissertation I discuss two empirical studies that examine how different types of firms in the biopharmaceutical industry approach different types of challenges posed by radical and uncertain technological change. In the first empirical essay I explore the role of different sources of experience in understanding incumbent pharmaceutical firms' decisions to develop new drugs. In the second empirical essay I explore how emerging new biotechnology ventures make alliance partner selection decisions as a function of both partner attractiveness and the risks of appropriation that arise from establishing alliances with incumbent pharmaceuticals.; In the first essay I examine the effects of different types of experience on the number of new products that a pharmaceutical firm develops for specific therapeutic areas. I focus on two sources of experience: a firm's internal experience and the experience of the members of the board of directors. First, I find that a firm's internal experience, which arises from prior new-product developments, has a curvilinear effect on the extent of new-product developments for a specific therapeutic area. Second, I provide evidence that the extent of new-product developments is explained by the directors' experience gained from participating in the new-product development activities of other organizations. Finally, I provide evidence that the directors' experience shapes the way in which the firm's internal experience affects the extent of new-product developments for a specific therapeutic area. These findings suggest that directors' experience may help firms overcome the constraints they face when trying to exploit their internal experience through new product developments.; In the second essay I explore how new biotechnology firms (NBFs) select pharmaceutical firms as R&D allies as a function of partner attractiveness and appropriation risks. I find that NBFs are more likely to ally with pharmaceutical firms that have the following two capabilities: (1) the ability to understand the NBF's technology (technological relatedness), and (2) strong development competences. Yet, I provide evidence showing that these positive effects of technological relatedness and a pharmaceutical firm's development experience on the likelihood of establishing an R&D alliance are negatively moderated by the pharmaceutical firm's therapeutic area diversity and the NBF's technology breadth. These findings suggest that NBFs see pharmaceutical firms' development experience and technological relatedness as increasing appropriation risks (rather than partner attractiveness) when the NBF's knowledge is broadly applicable or when the pharmaceutical firm is highly diversified across many therapeutic domains. |
Keyword | biotechnology; corporate governance; entrepreneurship; innovation and technology; strategic alliances; strategic management |
Language | English |
Part of collection | University of Southern California dissertations and theses |
Publisher (of the original version) | University of Southern California |
Place of publication (of the original version) | Los Angeles, California |
Publisher (of the digital version) | University of Southern California. Libraries |
Provenance | Electronically uploaded by the author |
Type | texts |
Legacy record ID | usctheses-m2483 |
Contributing entity | University of Southern California |
Rights | Diestre, Luis |
Repository name | Libraries, University of Southern California |
Repository address | Los Angeles, California |
Repository email | cisadmin@lib.usc.edu |
Filename | etd-DIESTRE-2967 |
Archival file | uscthesesreloadpub_Volume26/etd-DIESTRE-2967.pdf |
Description
Title | Page 1 |
Contributing entity | University of Southern California |
Repository email | cisadmin@lib.usc.edu |
Full text | EMPIRICAL ESSAYS ON ALLIANCES AND INNOVATION IN THE BIOPHARMACEUTICAL INDUSTRY by Luis Diestre A Dissertation Presented to the FACULTY OF THE GRADUATE SCHOOL UNIVERSITY OF SOUTHERN CALIFORNIA In Partial Fulfillment of the Requirements for the Degree DOCTOR OF PHILOSOPHY (BUSINESS ADMINISTRATION) August 2009 Copyright 2009 Luis Diestre |