Financing paths, firms’ governance and corporate entrepreneurship: Accessing and applying operant and operand resources in biotechnology firms

Abstract

This study investigates the systemic relationship between financing paths used by early-stage biotechnology firms, the accessed resources, the subsequent reconfiguration of management and governance structures, and their effect on the level of corporate entrepreneurship. Adopting a qualitative methodology based on an inductive approach, in 2018 and 2019 we observed 12 UK biotechnology ventures that accessed private, corporate or crowdfunding equity investments. We collected primary data through open-ended and semi-structured interviews with CEOs and board members of these firms. Findings were interpreted applying a resource-based perspective, which unveiled the role and importance of operant and operand resources for organizational coordination and functioning. The way in which the controlled operant resources are used to improve the management and governance structures, and their functional interdependence, ultimately determines an optimal level of corporate entrepreneurship for effectively exploiting the accessed operand resources. The results provide useful insights regarding the systemic interdependence between financing paths, organizational resources, management team, governance bodies, and corporate entrepreneurship, that can enhance the understanding and performance of managers, shareholders and policy-makers involved in biotechnology business.