Strategic use of corporate and scientific boards in the internationalisation of biotech firms

Abstract

Biotech firms are faced with particularly complex decisions early in their development. Because of the specific nature of their products, their growth strategy rapidly entails the internationalisation of their activities, especially through alliances. Small and medium–sized enterprises (SMEs) wishing to develop and access complementary skills may use corporate boards and scientific advisory boards. The resource–based view provides a compelling rationale for efficiently using these external sources of knowledge in order to access the key resources SMEs need to improve their performance. This study investigates how corporate and scientific advisory boards are involved in the internationalisation of biotech firms through strategic alliances. Based on semi–structured interviews and secondary data from 22 biotechnology firms, we describe the characteristics of these external sources of strategic advice and explore their impact on the firms’ internationalisation. A discussion of the results, along with their implications for future research and managerial practices are also presented.