Network Positions and the Probability of Being Acquired: An Empirical Analysis in the Biopharmaceutical Industry

Giovanni Perrone, Erica Mazzola, Dzidziso Samuel Kamuriwo

Risultato della ricerca: Article

3 Citazioni (Scopus)

Abstract

This paper examines the relationship between the firm's direct ties, its inter-firm network prominence and its likelihood of being acquired. The authors argue that firm's direct ties and prominence enhance the firm's visibility and signal its quality – and thus foster the firm's likelihood of being acquired. However, higher levels of direct ties and prominence, by providing access to resources and the firm's status, respectively, increase the firm's ability to remain independent and thus reduce its likelihood of being acquired. Thus, the authors posit the overall relation as an inverted U-shaped. Furthermore, they show that, for firms that undergo an initial public offering, the aforementioned relation becomes much weaker. The hypotheses are empirically tested in the biopharmaceutical industry and important theoretical and managerial implications are discussed.
Lingua originaleEnglish
pagine (da-a)516-533
Numero di pagine18
RivistaBritish Journal of Management
Volume27
Stato di pubblicazionePublished - 2016

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Visibility
Industry
Empirical analysis
Biopharmaceutical industry

All Science Journal Classification (ASJC) codes

  • Business, Management and Accounting(all)
  • Management of Technology and Innovation
  • Strategy and Management

Cita questo

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title = "Network Positions and the Probability of Being Acquired: An Empirical Analysis in the Biopharmaceutical Industry",
abstract = "This paper examines the relationship between the firm's direct ties, its inter-firm network prominence and its likelihood of being acquired. The authors argue that firm's direct ties and prominence enhance the firm's visibility and signal its quality – and thus foster the firm's likelihood of being acquired. However, higher levels of direct ties and prominence, by providing access to resources and the firm's status, respectively, increase the firm's ability to remain independent and thus reduce its likelihood of being acquired. Thus, the authors posit the overall relation as an inverted U-shaped. Furthermore, they show that, for firms that undergo an initial public offering, the aforementioned relation becomes much weaker. The hypotheses are empirically tested in the biopharmaceutical industry and important theoretical and managerial implications are discussed.",
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AU - Perrone, Giovanni

AU - Mazzola, Erica

AU - Kamuriwo, Dzidziso Samuel

PY - 2016

Y1 - 2016

N2 - This paper examines the relationship between the firm's direct ties, its inter-firm network prominence and its likelihood of being acquired. The authors argue that firm's direct ties and prominence enhance the firm's visibility and signal its quality – and thus foster the firm's likelihood of being acquired. However, higher levels of direct ties and prominence, by providing access to resources and the firm's status, respectively, increase the firm's ability to remain independent and thus reduce its likelihood of being acquired. Thus, the authors posit the overall relation as an inverted U-shaped. Furthermore, they show that, for firms that undergo an initial public offering, the aforementioned relation becomes much weaker. The hypotheses are empirically tested in the biopharmaceutical industry and important theoretical and managerial implications are discussed.

AB - This paper examines the relationship between the firm's direct ties, its inter-firm network prominence and its likelihood of being acquired. The authors argue that firm's direct ties and prominence enhance the firm's visibility and signal its quality – and thus foster the firm's likelihood of being acquired. However, higher levels of direct ties and prominence, by providing access to resources and the firm's status, respectively, increase the firm's ability to remain independent and thus reduce its likelihood of being acquired. Thus, the authors posit the overall relation as an inverted U-shaped. Furthermore, they show that, for firms that undergo an initial public offering, the aforementioned relation becomes much weaker. The hypotheses are empirically tested in the biopharmaceutical industry and important theoretical and managerial implications are discussed.

UR - http://hdl.handle.net/10447/213453

UR - http://www.ingenta.com/journals/browse/bpl/bjom

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VL - 27

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EP - 533

JO - British Journal of Management

JF - British Journal of Management

SN - 1045-3172

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