Knowledge relatedness and post-spin-off growth

By H. Sapienza, Annaleena Parhankangas, Erkko Autio. 2004

255 citations recorded by the source corpus.

Abstract In this article, we examine the effects of knowledge relatedness on the post-spin-off growth of firms spun off from industrial parent firms. We predict that growth is maximized when the knowledge base of the spin-off firm partially overlaps with that of its parent. This effect is due to learning: both too small and too great an overlap will inhibit growth, the first because limited knowledge overlap hampers local search and knowledge assimilation and the second because great knowledge overlap hampers the creation of novel knowledge combinations. The propositions are tested and confirmed using a sample of 54 industrial spin-off firms from Finland.

Subfields: Accounting, Economics and Econometrics, Management of Technology and Innovation

View Paper: https://www.semanticscholar.org/paper/fb94eec83426e1c626038dc6ba6ef8a7f83542d1

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In Accounting

In Economics and Econometrics

In Management of Technology and Innovation

Citations in the corpus

Divestiture and Firm Performance: A Meta-Analysis (2010, background): “Seward and Walsh (1996) argued that in a newly spun-off firm, effective internal controls will emerge due to the creation of separate traded equity claims and a more efficient market-based incentive compensation contract system.”
Export propensity, export intensity and firm performance: The role of the entrepreneurial founding team (2012, background): “A concrete technological knowledge base can allow a firm to develop products with higher levels of technological performance and to cut a product’s development time, allowing the firm to charge higher sales price and generate sales more rapidly (Sapienza et al 2004).”
The Effectiveness of University Knowledge Spillovers: Performance Differences between University Spinoffs and Corporate Spinoffs (2011, background): “Many entrepreneurs remain in close contact with their former employers and their former colleagues make up an important part of their networks because of shared technological knowledge (Sapienza et al., 2004).”
The internationalisation of born global and international new venture SMEs (2009, background): “, 2004) and an international if not global vision from the firm’s inception (Oviatt and McDougall, 1995; Moen, 2002; Andersson and Wictor, 2003; Sapienza et al., 2004).”
Knowledge conversion capability and the performance of corporate and university spin-offs (2007, background): “This definition is well grounded in the literature on CSOs (Chesbrough, 2003; Sapienza et al., 2004; Van de Velde et al., 2006) and corporate venturing (Block and MacMillan, 1993; Saxston, 2006).”
Corporate entrepreneurship: Current research and future directions (2009, background): “Hence, studies of corporate spin-offs show that their developmentiscontingentupontheresourcesinheritedfromtheparentincubatororganization(KlepperandSleeper,2005; Sapienza et al., 2004 ); the overlap of knowledge between parent and the spin-off being especially important.”