Social Networks, Learning, and Flexibility: Sourcing Scientific Knowledge in New Biotechnology Firms

We examine how two highly successful new biotechnology firms (NBFs) source their most critical input -- scientific knowledge. We find that scientists at the two NBFs enter into large numbers of collaborative research efforts with scientists at other organizations, especially universities. Formal market contracts are rarely used to govern these exchanges of scientific knowledge. Our findings suggest that the use of boundary-spanning social networks by the two NBFs increases both their learning and their flexibility in ways that would not be possible within a self-contained hierarchical organization.

Lezione D4 2014-15

Data representing 264 Fortune 500 firms were studied from the 1980\u27s time frame. Results show that block purchases are more likely to take place in firms with poor accounting performance and that defensive measures are ineffective in deterring block purchases

Social Networks, Learning, and Flexibility: Sourcing Scientific Knowledge in New Biotechnology Firms

This paper examines the organizational arrangements used by New Biotechnology Firms (NBFs) to source scientific knowledge. Using data from two highly successful NBFs, the paper shows that both firms relied principally on hierarchies and networks to source scientific knowledge; market arrangements were insignificant. Most interesting, each firm had a very large, diversified set of boundary-spanning collaborative research arrangements, mostly involving university scientists. It is argued that these external research networks enabled the two firms studied to compete more successfully in a highly turbulent and highly competitive industry environment