IDEAS home Printed from https://ideas.repec.org/a/eee/respol/v47y2018i9p1585-1600.html
   My bibliography  Save this article

Divide to connect: Reorganization through R&D unit spinout as linking context of intra-corporate networks

Author

Listed:
  • Cirillo, Bruno
  • Breschi, Stefano
  • Prencipe, Andrea

Abstract

The paper examines the formation of clique-spanning ties in intra-corporate co-invention networks, by focusing on the impact of R&D unit spinouts. Using data on thirty-one spinouts in eight large U.S. information and communication technology corporations, we show that the reorganization of R&D units through corporate spinouts is associated with an increase in the extent to which inventors employed in the unit collaborate with inventors located in other cliques within the corporate co-invention network. Interestingly, the spinout effect spills over to all members of the clique of spun-out inventors, also including those who remain with the parent firm. The interpretation of these empirical findings, grounded on existing theories and on the views of inventors and executives involved in the reorganization events, suggests that corporate spinouts generate a shock in intra-corporate research collaboration dynamics, which loosens clique lock-in effects and contributes to reset cliques’ boundaries in the intra-corporate research network.

Suggested Citation

  • Cirillo, Bruno & Breschi, Stefano & Prencipe, Andrea, 2018. "Divide to connect: Reorganization through R&D unit spinout as linking context of intra-corporate networks," Research Policy, Elsevier, vol. 47(9), pages 1585-1600.
  • Handle: RePEc:eee:respol:v:47:y:2018:i:9:p:1585-1600
    DOI: 10.1016/j.respol.2018.05.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0048733318301215
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.respol.2018.05.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gautam Ahuja & Giuseppe Soda & Akbar Zaheer, 2012. "The Genesis and Dynamics of Organizational Networks," Organization Science, INFORMS, vol. 23(2), pages 434-448, April.
    2. Arora, Ashish & Ceccagnoli, Marco & Cohen, Wesley M., 2008. "R&D and the patent premium," International Journal of Industrial Organization, Elsevier, vol. 26(5), pages 1153-1179, September.
    3. Sendil K. Ethiraj & Daniel Levinthal, 2004. "Modularity and Innovation in Complex Systems," Management Science, INFORMS, vol. 50(2), pages 159-173, February.
    4. Cowan, Robin & Jonard, Nicolas, 2004. "Network structure and the diffusion of knowledge," Journal of Economic Dynamics and Control, Elsevier, vol. 28(8), pages 1557-1575, June.
    5. Bruno Cirillo & Stefano Brusoni & Giovanni Valentini, 2014. "The Rejuvenation of Inventors Through Corporate Spinouts," Organization Science, INFORMS, vol. 25(6), pages 1764-1784, December.
    6. Paola Criscuolo & Ammon Salter & Anne L. J. Ter Wal, 2014. "Going Underground: Bootlegging and Individual Innovative Performance," Organization Science, INFORMS, vol. 25(5), pages 1287-1305, October.
    7. Carlos J. Serrano, 2010. "The dynamics of the transfer and renewal of patents," RAND Journal of Economics, RAND Corporation, vol. 41(4), pages 686-708, December.
    8. Alfonso Gambardella & Claudio Panico & Giovanni Valentini, 2015. "Strategic incentives to human capital," Strategic Management Journal, Wiley Blackwell, vol. 36(1), pages 37-52, January.
    9. Anne L.J. Ter Wal, 2013. "Cluster Emergence and Network Evolution: A Longitudinal Analysis of the Inventor Network in Sophia-Antipolis," Regional Studies, Taylor & Francis Journals, vol. 47(5), pages 651-668, May.
    10. C. K. Prahalad & Richard A. Bettis, 1986. "The dominant logic: A new linkage between diversity and performance," Strategic Management Journal, Wiley Blackwell, vol. 7(6), pages 485-501, November.
    11. Lori Rosenkopf & Giovanna Padula, 2008. "Investigating the Microstructure of Network Evolution: Alliance Formation in the Mobile Communications Industry," Organization Science, INFORMS, vol. 19(5), pages 669-687, October.
    12. Bronwyn H. Hall & Adam B. Jaffe & Manuel Trajtenberg, 2001. "The NBER Patent Citation Data File: Lessons, Insights and Methodological Tools," NBER Working Papers 8498, National Bureau of Economic Research, Inc.
    13. Paul Almeida & Bruce Kogut, 1999. "Localization of Knowledge and the Mobility of Engineers in Regional Networks," Management Science, INFORMS, vol. 45(7), pages 905-917, July.
    14. Ranjay Gulati & Maxim Sytch & Adam Tatarynowicz, 2012. "The Rise and Fall of Small Worlds: Exploring the Dynamics of Social Structure," Organization Science, INFORMS, vol. 23(2), pages 449-471, April.
    15. Janet Bercovitz & Maryann Feldman, 2008. "Academic Entrepreneurs: Organizational Change at the Individual Level," Organization Science, INFORMS, vol. 19(1), pages 69-89, February.
    16. Srikanth Paruchuri & Snehal Awate, 2017. "Organizational knowledge networks and local search: The role of intra‐organizational inventor networks," Strategic Management Journal, Wiley Blackwell, vol. 38(3), pages 657-675, March.
    17. Iain Cockburn & Rebecca Henderson & Scott Stern, 1999. "Balancing Incentives: The Tension Between Basic and Applied Research," NBER Working Papers 6882, National Bureau of Economic Research, Inc.
    18. Joel A. C. Baum & Andrew V. Shipilov & Tim J. Rowley, 2003. "Where do small worlds come from?," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 12(4), pages 697-725, August.
    19. Constance E. Helfat & Margaret A. Peteraf, 2015. "Managerial cognitive capabilities and the microfoundations of dynamic capabilities," Strategic Management Journal, Wiley Blackwell, vol. 36(6), pages 831-850, June.
    20. Tim Rowley & Dean Behrens & David Krackhardt, 2000. "Redundant governance structures: an analysis of structural and relational embeddedness in the steel and semiconductor industries," Strategic Management Journal, Wiley Blackwell, vol. 21(3), pages 369-386, March.
    21. Mahka Moeen & Rajshree Agarwal, 2017. "Incubation of an industry: Heterogeneous knowledge bases and modes of value capture," Strategic Management Journal, Wiley Blackwell, vol. 38(3), pages 566-587, March.
    22. Hoisl, Karin, 2007. "Tracing mobile inventors--The causality between inventor mobility and inventor productivity," Research Policy, Elsevier, vol. 36(5), pages 619-636, June.
    23. Jack A. Nickerson & Todd R. Zenger, 2004. "A Knowledge-Based Theory of the Firm—The Problem-Solving Perspective," Organization Science, INFORMS, vol. 15(6), pages 617-632, December.
    24. Li, Guan-Cheng & Lai, Ronald & D’Amour, Alexander & Doolin, David M. & Sun, Ye & Torvik, Vetle I. & Yu, Amy Z. & Fleming, Lee, 2014. "Disambiguation and co-authorship networks of the U.S. patent inventor database (1975–2010)," Research Policy, Elsevier, vol. 43(6), pages 941-955.
    25. Nicholas S. Argyres & Brian S. Silverman, 2004. "R&D, organization structure, and the development of corporate technological knowledge," Strategic Management Journal, Wiley Blackwell, vol. 25(8‐9), pages 929-958, August.
    26. Sarah Kaplan & Rebecca Henderson, 2005. "Inertia and Incentives: Bridging Organizational Economics and Organizational Theory," Organization Science, INFORMS, vol. 16(5), pages 509-521, October.
    27. Martin Gargiulo & Mario Benassi, 2000. "Trapped in Your Own Net? Network Cohesion, Structural Holes, and the Adaptation of Social Capital," Organization Science, INFORMS, vol. 11(2), pages 183-196, April.
    28. Samina Karim & Charles Williams, 2012. "Structural knowledge: how executive experience with structural composition affects intrafirm mobility and unit reconfiguration," Strategic Management Journal, Wiley Blackwell, vol. 33(6), pages 681-709, June.
    29. Christina Fang & Jeho Lee & Melissa A. Schilling, 2010. "Balancing Exploration and Exploitation Through Structural Design: The Isolation of Subgroups and Organizational Learning," Organization Science, INFORMS, vol. 21(3), pages 625-642, June.
    30. Ranjay Gulati & Phanish Puranam, 2009. "Renewal Through Reorganization: The Value of Inconsistencies Between Formal and Informal Organization," Organization Science, INFORMS, vol. 20(2), pages 422-440, April.
    31. Jeongsik “Jay” Lee, 2010. "Heterogeneity, Brokerage, and Innovative Performance: Endogenous Formation of Collaborative Inventor Networks," Organization Science, INFORMS, vol. 21(4), pages 804-822, August.
    32. Atul Nerkar & Srikanth Paruchuri, 2005. "Evolution of R&D Capabilities: The Role of Knowledge Networks Within a Firm," Management Science, INFORMS, vol. 51(5), pages 771-785, May.
    33. Michael L. Tushman & Ralph Katz, 1980. "External Communication and Project Performance: An Investigation into the Role of Gatekeepers," Management Science, INFORMS, vol. 26(11), pages 1071-1085, November.
    34. Wenpin Tsai, 2000. "Social capital, strategic relatedness and the formation of intraorganizational linkages," Strategic Management Journal, Wiley Blackwell, vol. 21(9), pages 925-939, September.
    35. John Hagedoorn, 2003. "Sharing intellectual property rights--an exploratory study of joint patenting amongst companies," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 12(5), pages 1035-1050, October.
    36. Chesbrough, Henry, 2003. "The governance and performance of Xerox's technology spin-off companies," Research Policy, Elsevier, vol. 32(3), pages 403-421, March.
    37. Michelle Gittelman & Bruce Kogut, 2003. "Does Good Science Lead to Valuable Knowledge? Biotechnology Firms and the Evolutionary Logic of Citation Patterns," Management Science, INFORMS, vol. 49(4), pages 366-382, April.
    38. Melero, Eduardo & Palomeras, Neus, 2015. "The Renaissance Man is not dead! The role of generalists in teams of inventors," Research Policy, Elsevier, vol. 44(1), pages 154-167.
    39. Rebecca Henderson & Sarah Kaplan, 2005. "Inertia and Incentives: Bridging Organizational Economics and Organizational Theory," NBER Working Papers 11849, National Bureau of Economic Research, Inc.
    40. Nicolaj Siggelkow & Daniel A. Levinthal, 2003. "Temporarily Divide to Conquer: Centralized, Decentralized, and Reintegrated Organizational Approaches to Exploration and Adaptation," Organization Science, INFORMS, vol. 14(6), pages 650-669, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lorenzo Ardito & Rosa Maria Dangelico & Antonio Messeni Petruzzelli, 2021. "The link between female representation in the boards of directors and corporate social responsibility: Evidence from B corps," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(2), pages 704-720, March.
    2. Haschka, Rouven E. & Herwartz, Helmut, 2020. "Innovation efficiency in European high-tech industries: Evidence from a Bayesian stochastic frontier approach," Research Policy, Elsevier, vol. 49(8).
    3. Soda, Giuseppe & Zaheer, Akbar & Sun, Xiaoming & Cui, Wentian, 2021. "Brokerage evolution in innovation contexts: Formal structure, network neighborhoods and knowledge," Research Policy, Elsevier, vol. 50(10).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Castellani, Davide & Perri, Alessandra & Scalera, Vittoria G., 2022. "Knowledge integration in multinational enterprises: The role of inventors crossing national and organizational boundaries," Journal of World Business, Elsevier, vol. 57(3).
    2. Rajat Khanna & Isin Guler, 2022. "Degree assortativity in collaboration networks and invention performance," Strategic Management Journal, Wiley Blackwell, vol. 43(7), pages 1402-1430, July.
    3. Maxim Sytch & Adam Tatarynowicz & Ranjay Gulati, 2012. "Toward a Theory of Extended Contact: The Incentives and Opportunities for Bridging Across Network Communities," Organization Science, INFORMS, vol. 23(6), pages 1658-1681, December.
    4. Bruno Cirillo, 2019. "External Learning Strategies and Technological Search Output: Spinout Strategy and Corporate Invention Quality," Organization Science, INFORMS, vol. 30(2), pages 361-382, March.
    5. Mario V. Tomasello & Mauro Napoletano & Antonios Garas & Frank Schweitzer, 2017. "The rise and fall of R&D networks," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 26(4), pages 617-646.
    6. Linda Argote & Sunkee Lee & Jisoo Park, 2021. "Organizational Learning Processes and Outcomes: Major Findings and Future Research Directions," Management Science, INFORMS, vol. 67(9), pages 5399-5429, September.
    7. Mo Chen & Aseem Kaul & Brian Wu, 2019. "Adaptation across multiple landscapes: Relatedness, complexity, and the long run effects of coordination in diversified firms," Strategic Management Journal, Wiley Blackwell, vol. 40(11), pages 1791-1821, November.
    8. Bruno Cirillo & Stefano Brusoni & Giovanni Valentini, 2014. "The Rejuvenation of Inventors Through Corporate Spinouts," Organization Science, INFORMS, vol. 25(6), pages 1764-1784, December.
    9. Yan Yan & Jiancheng Guan, 2018. "How multiple networks help in creating knowledge: evidence from alternative energy patents," Scientometrics, Springer;Akadémiai Kiadó, vol. 115(1), pages 51-77, April.
    10. Jacob, Jojo & Duysters, Geert, 2017. "Alliance network configurations and the co-evolution of firms' technology profiles: An analysis of the biopharmaceutical industry," Technological Forecasting and Social Change, Elsevier, vol. 120(C), pages 90-102.
    11. Paul Almeida & Anupama Phene & Sali Li, 2015. "The Influence of Ethnic Community Knowledge on Indian Inventor Innovativeness," Organization Science, INFORMS, vol. 26(1), pages 198-217, February.
    12. Konstantinos Grigoriou & Frank T. Rothaermel, 2017. "Organizing for knowledge generation: internal knowledge networks and the contingent effect of external knowledge sourcing," Strategic Management Journal, Wiley Blackwell, vol. 38(2), pages 395-414, February.
    13. Kim, Dennie & Funk, Russell & Zaheer, Aks, 2020. "Structure in Context: A Morphological View of Whole Network Performance," SocArXiv x6q7g, Center for Open Science.
    14. Chila, Vilma, 2021. "Knowledge dynamics in employee entrepreneurship : Implications for parents and offspring," Other publications TiSEM a1f5d18c-783b-4af6-8414-6, Tilburg University, School of Economics and Management.
    15. David Gaddis Ross, 2014. "An Agency Theory of the Division of Managerial Labor," Organization Science, INFORMS, vol. 25(2), pages 494-508, April.
    16. Madeline K. Kneeland & Melissa A. Schilling & Barak S. Aharonson, 2020. "Exploring Uncharted Territory: Knowledge Search Processes in the Origination of Outlier Innovation," Organization Science, INFORMS, vol. 31(3), pages 535-557, May.
    17. Sunkee Lee & Philipp Meyer-Doyle, 2017. "How Performance Incentives Shape Individual Exploration and Exploitation: Evidence from Microdata," Organization Science, INFORMS, vol. 28(1), pages 19-38, February.
    18. repec:hal:spmain:info:hdl:2441/f6h8764enu2lskk9p5487a6cm is not listed on IDEAS
    19. Goossen, Martin C. & Paruchuri, Srikanth, 2022. "Measurement errors and estimation biases with incomplete social networks: replication studies on intra-firm inventor network analysis," Research Policy, Elsevier, vol. 51(1).
    20. Samina Karim & Aseem Kaul, 2015. "Structural Recombination and Innovation: Unlocking Intraorganizational Knowledge Synergy Through Structural Change," Organization Science, INFORMS, vol. 26(2), pages 439-455, April.
    21. Cassiman, Bruno & Veugelers, Reinhilde & Arts, Sam, 2018. "Mind the gap: Capturing value from basic research through combining mobile inventors and partnerships," Research Policy, Elsevier, vol. 47(9), pages 1811-1824.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:respol:v:47:y:2018:i:9:p:1585-1600. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/respol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.