Prior research has focused on the performance implications of positive or neutral parent-child relationships, but neglected negative, conflict-laden relationships. This study explores from an embeddedness perspective whether parent hostility (degree to which an incumbent firm disapproves of the spawning of a spin-out from within its ranks) 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 negative consequences from hostility. These are less severe, however, if the spin-out pursues effective network development.
This is the peer reviewed version of the following article: Walter, S. G., Heinrichs, S. and Walter, A. (2014), Parent hostility and spin-out performance. Strat. Mgmt. J., 35: 2031–2042. doi: 10.1002/smj.2201, which has been published in final form at http://onlinelibrary.wiley.com/doi/10.1002/smj.2201/abstract This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.