Linking funding constraints and stakeholder pressure with economic performance of biotechnology firms: The mediating role of access to finance

Ariane Carniel
Helmholtz-Zentrum Dresden-Rossendorf, Institute of Radiopharmaceutical Cancer Research, Dresden, Germany.
Sara Lee
The Novo Nordisk Foundation Center for Biosustainability, Technical University of Denmark, Kongens Lyngby, Denmark

DOI:https://doi.org/10.5912/jcb2140

Abstract:

The research aimed to analyse the funding constraints and stakeholder pressure in the economic performance of biotechnology firms. Firm invest in resources according to the availability of resources, hence with financial constraint they have to be cautious in investing and focus on strategies efficient to implement within limited resources, hence they would be more reluctant to invest in innovation as it has separate risk attached to it. To conduct this research, the quantitative research design method has been incorporated to attain adequate results. The gathered data was later analysed through SPSS that declared significant association among the funding constraints and the economic performance. A significant relationship was found between stakeholder pressure and the economic performance. The mediation of access to finance has also been resulted to be significant. The research contributes theoretically in the growing body of literature by extending modern framework concerning financial constraints. The practical implications however lie for the managerial bodies of biotechnology firms to ensure policies regarding effective employee performance attainment through accurate access to finance and coping the stakeholder pressure.