Inderscience Publishers

Explaining the differences in domestic and cross-boundary strategic alliances in the pharmaceutical/biotech industry

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In this exploratory empirical study of 83 domestic and 101 cross-boundary strategic alliances, we find very strong evidence to show that distinct attributes define the two kinds of alliances. Further, significantly different motivations explain domestic and cross-boundary alliances. In addition, strategic behaviour theory and synergy explain strategic alliances of both kinds better than transaction costs theory or mimetic theory. Finally, certain types of strategic alliances progress more smoothly than others. The study offers a number of avenues for future research.

Keywords: biotech industry, pharmaceutical industry, strategic alliances, international strategic alliances

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