Abstract
This study discusses the role of core and symbolic capabilities during due-diligence processes when investing in companies in turbulent fields such as the biotechnology industry. The results indicate that investors' evaluations are hierarchical and are based on two premises. First, investors look for core capabilities - the characteristics that signal the potential for future success. They then search for symbolic elements, such as reputation, to confirm their decisions. The study expands earlier models of investors' evaluation processes. It also offers new insights for entrepreneurs of biotechnology firms.
| Original language | English |
|---|---|
| Article number | 1450043 |
| Journal | International Journal of Innovation and Technology Management |
| Volume | 11 |
| Issue number | 6 |
| DOIs | |
| State | Published - 22 Dec 2014 |
| Externally published | Yes |
Keywords
- Biotechnology companies
- Core capabilities
- Due-diligence process
- Entrepreneurs
- Evaluation
- Investments
- Investors
- Symbolic capabilities
- Venture capital
All Science Journal Classification (ASJC) codes
- Management of Technology and Innovation