Keywords: crisis management, entrepreneurship, bioentrepreneurship, management, venture capital, biotechnology, financing, investor relations, technology breakdown, biopharmaceutical startups, case study, project acquisition strategy, technology failure
Crisis management in entrepreneurial biotechnology companies: an explorative case study
Biotechnology startup companies are often based on little more than a technology with the potential to contribute to the development of innovative products in the future. Failure of this technology leads to a life-threatening crisis for these firms; managers must react quickly to ensure survival of their companies. The existing literature does not provide information on how biotechnology startups successfully escape technology breakdown crises. In this work, we present an in-depth case study of a biopharmaceutical startup company that suffered and successfully escaped a technology breakdown crisis. We illustrate its project acquisition strategy as well as management of financial, organisational, human and social resources after the breakdown. Our findings have implications for managers of entrepreneurial biotechnology firms.