Title: Interpreneurial strategic behaviour and business performance
Author: Inaki Pena
Address: ESTE. University of Deusto, Basque Institute of Competitiveness, Mundaiz 50, Donostia 20.012, Spain
Journal: Int. J. of Entrepreneurship and Innovation Management, 2009 Vol.10, No.1, pp.3 - 19
Abstract: During the 1990s, we have witnessed a proliferation of business networks formed by knowledge-intensive companies with the aim of developing modern technologies (i.e. optoelectronics, semiconductors, biotechnology, nanotechnology, etc.) and launching innovative products to the marketplace. We define interpreneurial networks as inter-firm cooperative agreements between two or more companies in order to develop path-breaking technologies, which in turn, are expected to produce marketable innovative products. Both alliance formation and innovation have been at the core of interpreneurial strategies. This study is an attempt to test the relationship between interpreneurial strategic behaviour and business performance in major biotechnology and life science US and European companies. Results suggest that firm intangible resources like industry experience and research skills acquired over time seem to be key assets for successful product innovation. Moreover, companies pursuing option-like interpreneurial strategies, that is, strategies that imply a slower pace for conducting successive inter-firm agreements and a lower alliance investment commitment, show a better financial performance.
Keywords: interpreneurial strategies; technology-intensive firms; option strategies; business performance; interpreneurial networks; inter-firm cooperation; product innovation; biotechnology; life sciences; biotech firms; intangible resources; industry experience; research skills; strategic alliances.