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When are assets complementary? star scientists, strategic alliances, and innovation in the pharmaceutical industry
Author(s) -
Hess Andrew M.,
Rothaermel Frank T.
Publication year - 2011
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.916
Subject(s) - pharmaceutical industry , industrial organization , resource (disambiguation) , business , value (mathematics) , resource based view , star (game theory) , marketing , knowledge management , computer science , competitive advantage , microbiology and biotechnology , computer network , machine learning , biology , mathematical analysis , mathematics
To answer the question of when are assets complementary, we investigate specific resource combinations along the value chain, focusing on two mechanisms that are central to combining resources for innovation in the pharmaceutical industry: recruitment and retention of star scientists, and 2) engagement in strategic alliances. We propose that resource combinations that focus on the same parts of the value chain are substitutes due to knowledge redundancies. Conversely, we hypothesize that resource combinations that link different parts of the value chain are complements due to integration of nonredundant knowledge. To test these hypotheses, we empirically track the innovative performance of 108 global pharmaceutical firms over three decades (1974–2003). Copyright © 2011 John Wiley & Sons, Ltd.