Evaluation of core and symbolic capabilities during due-diligence processes in new biotechnology firms

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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 languageEnglish
Article number1450043
JournalInternational Journal of Innovation and Technology Management
Volume11
Issue number6
DOIs
StatePublished - 22 Dec 2014
Externally publishedYes

Keywords

  • Biotechnology companies
  • Core capabilities
  • Due-diligence process
  • Entrepreneurs
  • Evaluation
  • Investments
  • Investors
  • Symbolic capabilities
  • Venture capital

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