The interaction between managerial and technological capabilities as a determinant of company performance: an empirical study of biotech firms

Abstract

The resource-based view (RBV) assumes that firms have different resources and capabilities that may persist over time. The nature of these resources and capabilities enable a firm to outperform its competitors. This paper builds on the RBV by examining how managerial and technological capabilities interact to affect firm performance. While both managerial and technological capabilities have previously been shown to enhance performance, these capabilities have not been examined in conjunction. Specifically, the paper examines these capabilities in the context of biotech alliances with larger pharmaceutical firms because these alliances typically highlight the importance of technological capabilities without fully understanding their interaction with managerial capabilities. The sample includes 72 small biotech firms (<100 employees) in an alliance with a larger pharmaceutical firm. These results show the main effect of managerial capabilities is positively correlated with firm performance. The interaction effect, however, shows that this relationship holds for firms with higher levels of technological capabilities, but is reversed for those with lower levels of technological capabilities. In summary, the paper enhances the understanding of how capabilities interact in alliances and demonstrates the need for managerial capabilities to more fully reap the rewards of technological capabilities.

Document Type

Restricted Article: Campus only access

Publication Date

3-2013

Publisher Statement

Copyright © 2013, Gale Academic Onefile.

The definitive version is available at: link.gale.com/apps/doc/A332657267/AONE?u=vic_uor&sid=bookmark-AONE&xid=62baa12f.

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