A study of biotechnology start-ups undergoing leadership change: Antecedents of change and endogenous performance consequences

作者：Banerjee Preeta M^*; Cole Benjamin M

来源：Technovation, 2012, 32(9-10): 568-578.

DOI：10.1016/j.technovation.2012.05.003

• Biotechnology
• Start-up firm
• Patenting
• Venture capital
• Initial public offering
• Leadership change
• Antecedents
• Consequences

One of the most important decisions that a new biotechnology firm faces is whether to replace its founding CEO, who often has been involved with the invention of the firm%26apos;s core technology, with a more professional manager, who has broader commercialization skills to help the firm to grow into a viable business. In this paper, we argue that leadership change away from the founding CEO is influenced strongly by the interests of key stakeholders and that the endogeneity inherent in the change (or non-change) influences firm performance. As the context surrounding decision-making changes from pre-patent to post-IPO, key stakeholders often may not view what is best for the firm and best for self-interest in the same way. Using data on change in leadership at 135 U.S. biotechnology equipment firms, we find evidence that the context in which decisions are being made influences which of the various competing interests will take precedence. The results further confirm the importance of controlling for endogeneity in decision-making when examining firm performance.

• 出版日期2012-10