Abstract:
The majority of biotechnology firms are founded by scientists and the organisations are
characterized by high human capital density. The existing research has focused on these
founders and their impact on the human and social capital within their firms (Powell,
1996; Murray, 2004). However, there are significant gaps in understanding the unique
requirements and employment demands of biotechnology start-ups. While there have
been several studies investigating the organisation and building of the employment
system of entrepreneurial firms (e.g., Burton, 1995), our understanding of the role
founders play in building of the employment system still remains limited particularly in
the context of biotechnology. The focus of this study is how founders of biotechnology
companies organise and build the employment system in their start-up ventures.
Based on a study of three biotechnology firms and their founders, this thesis adopts an
integrative cognitive methodology in studying the founder’s role in the employment
system creation within their new ventures. This study builds on an in-depth multi-method
case study approach in examining founders’ mental models of the employment system
and the organisations that they have built. The findings suggest that founders approach
the human capital systems within their firm with a specific mental model of human
capital organisation. These mental models of the employment system emphasise informal
and formal managerial practices that are designed to achieve various aspects of the
organisation’s culture and goals. The findings also suggest that founders’ mental models
of employment systems are influenced by a variety of determining factors that include
strategic choice, environmental influences and individual backgrounds that shape the
nature and content of the employment system they form.
