Ferguson, manager perceptions of their ?nancial and

Ferguson, Paulin, Moslein, & Muller, 2005
were examined the effect of Relational governance on the performance of
?nancial partnerships to compare biotechnology manager assessments of their
?nancial and non-?nancial partnerships. They have conducted a structural
interview to collect data and the respondents were chief executive, operations
or ?nancial of?cers of 79 emerging biotechnology companies and 36 lead
investors in Germany, Canada, and France. They found that Relational governance
is positively linked with performance. Relational governance was measured by
relational norms such as ?exibility, information sharing, solidarity and
fairness, and performance was measured by overall effectiveness and partnership
bene?ts. To assess the relationship between the two variables, they have been
followed three main steps, First, the influence of relational governance on
partnership efficiency and bene?ts was examined. Second, for the ?nancial
corporations, the perceptions of both biotech managers and lead investors were
compared. Third, the biotech manager perceptions of their ?nancial and
non-?nancial partnerships were analyzed. We
clearly demonstrate the importance of social embeddedness in the economic
activities of ?rms in clusters of emerging biotechnology companies. The higher
the parties assess the degree of relational governance in biotechnology
partnerships, the greater are the perceptions of the overall effectiveness and
the derived bene?ts. Therefore, these close, collaborative, fast-developing and
relatively short-lived partnerships can also bene?t from effective relationship
management. Among four dimensions of Relational Governance, Communication (information
sharing) was found out as the most predictive variable on partnership performance
according to Ferguson, Paulin, Moslein, & Muller
(2005). Also, they viewed that the financial partnership of biotech
managers is to be less relational compared to their non-financial partnerships.