Commitment, Certainty, and Causation logic: Understanding the Networking Process of Internationalising Biotechnology Start-ups

Abstract

Internationalisation is important for the growth and success of biotechnology start-ups in New Zealand. As the offering of these start-ups are usually highly specialised and serves a specific niche, there is a need for foreign expansion due to the small domestic market. Also, biotechnology start-ups often experience a long development period and suffer from resource poverty. As a result, the firms’ networks play a crucial role in their internationalisation. This thesis looks to understand the networking processes of biotechnology start-ups during the pre-commercialisation period, particularly on how these firms may network to drive its internationalisation. Indeed, the significant role of networking has been increasingly highlighted in the internationalisation process literature. This research used the revisited Uppsala model as the main theory on internationalisation process, and the theory of effectuation was used to provide a framework for understanding the decision-making logics under uncertainty. Using a qualitative single case study involving a New Zealand biotechnology start-up in its pre-commercialisation period, this thesis builds on the effectual Uppsala model by investigating the networking process of firms in the pre-internationalisation period, a need highlighted by entrepreneurship studies. The findings of this thesis emphasise the complexity of networking in the biotechnology start-up. Through the long developmental period experienced by biotechnology start-ups, this study shows that relationships were simultaneously built for current technology development as well as preparation for future business development. And managers of the firm displayed two distinctive modes of logics in the construction of its network, effectual and causal logics. Through comparisons of the relationships built in the case company, this thesis provides further empirical evidence for the shift from effectual networking to causal networking when the situation allows for predictability. Importantly, this thesis suggests that increasing in the specificity of goal in a situation promotes the use of casual networking. The specificity of goal increases with increasing commitments. Lastly, in the context of biotechnology start-ups, this study shows that managers might make assumptions for its technological means during effectual networking with commercialisation partners.