Home > Research > Publications & Outputs > Spawned with a rusty spoon
View graph of relations

Spawned with a rusty spoon: when and how can spin-outs cope with parent hostility?

Research output: Contribution to Journal/MagazineJournal articlepeer-review

Published
Close
Article number15029
<mark>Journal publication date</mark>01/2013
<mark>Journal</mark>Academy of Management Annual Meeting Proceedings
Number of pages6
Publication StatusPublished
<mark>Original language</mark>English

Abstract

Prior research has focused on the performance implications of positive or neutral parent-child relationships, but neglected negative, conflict-laden relationships. Drawing on embeddedness theory, we investigated whether and when parent hostility (degree to which a parent firm disapproves the spawning of an own spin-out) affects spin-out performance and how spin-outs can effectively react to it. Analyses of 144 technology spin-outs support our arguments that spin-outs suffer from hostility. Hostility consequences are, however, less severe if market turbulence is high or if the spin-out pursues effective network development.