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At the Interfaces of Governance and Competence Perspectives: Discussing Organizational Choices in the Scottish Biotechnology Cluster

Rosiello, A

Technology Analysis and Strategic Management   19 (1) 45-68

January 2007

This paper focuses on the desirability of different modes of governance in the context of the Scottish biotechnology cluster. The objective is to design theoretical models able to predict organizational choices made by firms seeking access to key complementary assets. Inspiration is drawn from two distinct streams of research: transaction cost economics and the competence perspective.

The procedure adopted replicates the static and comparative approach used in several empirical investigations by transaction cost economics. However, as in a competence perspective, 'strategizing' behaviour is taken into account. The data needed to run econometric analysis have been collected via mail surveys based on the completion of a questionnaire. Valid responses were provided by 31.2% of an original sample that was composed of a range of organizations including dedicated biotechnology firms, equipment and service providers, clinical research organizations, etc.

Empirical results show that both transaction cost and competence-related consideration help explain the selection of specific governance modes. However, Scottish biotechnology companies seem to be predominantly concerned with enhancing existing competences.