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

Research output: Contribution to journalJournal article

Published

Article number15029
Journal publication date01/2013
JournalAcademy of Management Annual Meeting Proceedings
Number of pages6
Original languageEnglish

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.