Correspondence: Martin J. Bliemel, Segal Graduate School of Business, Room V255, Simon Fraser University, 500 Granville St, Vancouver, BC, Canada V6C 1W6. Tel: +1 778 782 7738; Fax: +1 778 782 5122; E-mail: mbliemel@sfu.ca

¹is a PhD candidate in Strategy and Entrepreneurship at the Segal Graduate School of Business, Simon Fraser University at Vancouver, Canada. He also holds a BSc in Mechanical Engineering and MBA, both from Queen's University at Kingston, Canada. Martin is interested in how high-tech entrepreneurs build and use their social networks while developing their new ventures. He has presented his work at conferences such as Academy of Management, West Coast Research Symposium and Administrative Sciences Association of Canada, and has also participated in international workshops such as EUDOKMA and Max Planck Summer Institute.

²has worked for several years as a industrial engineer before earning his PhD in operations strategy from the University of Sheffield. He is currently the Canada Research Chair in Technology and Operations Management in the Segal Graduate School of Business at Simon Fraser University. His research focuses on the design and operational performance of technology-based organizations; in particular, he is interested in control systems, customization of products and services, and the design and management of new product development processes.

Received 15 April 2008; Revised 15 April 2008; Published online 27 May 2008.

Abstract

Survival and growth of firms depends on their relationships to other organisations, including key suppliers, customers, supporters and competitors. This study compares geographic aspects of the networks of biotechnology firms (DBFs) and contract research organisations and service firms (CROs) in Vancouver, Canada. We find that for DBFs the key actors (organisations and individuals) that they network with are globally located (ie not local), despite the DBFs having originated from a local university. In contrast, CROs are more likely to network with local actors, and with actors on the same continent. Of the DBFs providing performance data, the distribution of their performance is consistent with recent developments in structural embeddedness theory (ie network coupling theory). This suggests that their performance may be inhibited if they are under- or over-embedded in their network, with the greatest opportunity for success in a medium range of coupling.