The formation of subsequent inter-firm R&D partnerships between large pharmaceutical companies and small, entrepreneurial biotechnology firms – how important is inter-organisational trust?
by John Hagedoorn, Nadine Roijakkers, Hans Van Kranenburg
International Journal of Technology Management (IJTM), Vol. 44, No. 1/2, 2008

Abstract: This paper analyses the role of inter-organisational trust in pharmaceutical biotechnology, an industry characterised by a strong dual market structure. Our main finding is that repeated ties in pairs of large pharmaceutical companies and small, entrepreneurial biotechnology firms, which indicate inter-organisational trust, have a negative effect on subsequent partnering. An explanation for this result is found in specific conditions for R&D partnering in this high-technology dual market structure. Partnerships between a small number of very large companies and a large group of dependent small companies are not characterised by mutual dependence and inter-organisational trust.

Online publication date: Sun, 12-Oct-2008

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