TY - JOUR
T1 - Do They Know Something We Don't? Endorsements from Foreign MNCs and Domestic Network Advantages for Start-Ups
AU - Aharonson, Barak S.
AU - Tzabbar, Daniel
AU - Amburgey, Terry L.
N1 - Publisher Copyright:
© 2016 Strategic Management Society.
PY - 2016/2/1
Y1 - 2016/2/1
N2 - Plain language summary: This article examines the effects of alliances with foreign multinational corporations (MNCs) on a local start-up's attractiveness as a partner in its domestic research networks. We argue that such international strategic alliances enhance a start-up's subsequent alliance activity and its status in its domestic R&D network. The analysis shows that, indeed, alliances with foreign MNCs significantly enhance the start-up's attractiveness and its future alliance activity, especially when the start-up is young (up to the age of five). Furthermore, alliances with foreign MNCs from a variety of different countries of origin (e.g., U.K., Germany, and France) have stronger effects on a start-up's subsequent alliance activity, supporting the argument that even in the age of globalization, location still matters. Technical summary: This article examines the effects of endorsements from foreign multinational corporations (MNCs) on the centrality of biotech start-ups within their domestic research networks. We argue that international strategic alliances enhance a start-up's subsequent movement toward a more central position in its domestic R&D network. Analyzing U.S. biotech start-ups over time, our findings show that endorsements from foreign MNCs significantly enhance the subsequent network centrality of U.S. biotech start-ups. This endorsement effect is magnified in the early stages of the start-up's life cycle. Furthermore, endorsements by foreign MNCs from a variety of different countries of origin have stronger effects on a start-up's subsequent network centrality, supporting the contention that even in the age of globalization, location still matters.
AB - Plain language summary: This article examines the effects of alliances with foreign multinational corporations (MNCs) on a local start-up's attractiveness as a partner in its domestic research networks. We argue that such international strategic alliances enhance a start-up's subsequent alliance activity and its status in its domestic R&D network. The analysis shows that, indeed, alliances with foreign MNCs significantly enhance the start-up's attractiveness and its future alliance activity, especially when the start-up is young (up to the age of five). Furthermore, alliances with foreign MNCs from a variety of different countries of origin (e.g., U.K., Germany, and France) have stronger effects on a start-up's subsequent alliance activity, supporting the argument that even in the age of globalization, location still matters. Technical summary: This article examines the effects of endorsements from foreign multinational corporations (MNCs) on the centrality of biotech start-ups within their domestic research networks. We argue that international strategic alliances enhance a start-up's subsequent movement toward a more central position in its domestic R&D network. Analyzing U.S. biotech start-ups over time, our findings show that endorsements from foreign MNCs significantly enhance the subsequent network centrality of U.S. biotech start-ups. This endorsement effect is magnified in the early stages of the start-up's life cycle. Furthermore, endorsements by foreign MNCs from a variety of different countries of origin have stronger effects on a start-up's subsequent network centrality, supporting the contention that even in the age of globalization, location still matters.
KW - Centrality
KW - Endorsement
KW - International alliances
KW - MNC
KW - Network
UR - http://www.scopus.com/inward/record.url?scp=84959052273&partnerID=8YFLogxK
U2 - 10.1002/gsj.1109
DO - 10.1002/gsj.1109
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AN - SCOPUS:84959052273
SN - 2042-5791
VL - 6
SP - 31
EP - 49
JO - Global Strategy Journal
JF - Global Strategy Journal
IS - 1
ER -