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Continuity and change in a spin-off venture: the process of reimprinting

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  • Simone Ferriani
  • Elizabeth Garnsey
  • Gianni Lorenzoni
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    Abstract

    Because new entrants very often spin off from established firms, their learning and capabilities are closely linked to their organizational and technological heritage. While this may provide an initial advantage, parental influence can generate inertia and resistance to change, unless the new company is able to unlearn inappropriate practices and create its unique competitive identity. The tension between inheritance and search for novelty is the subject of the article. Building on an in-depth case study of Acorn Computers and ARM semiconductors, we present a model of intergenerational learning and spin-off performance. Early parental influence is followed by intense learning, improvisation and response to feedback from the market. This we term reimprinting , to emphasize the enduring competitive and organizational identity established early on by the spin-off, which in this case provided the basis for disruptive innovation. Focus on the parent--progeny dyad as the unit of analysis can reveal micro-processes that reconstitute past experience to make possible both continuity and innovation in the spin-off venture. Copyright 2012 The Author 2012. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved., Oxford University Press.

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    Bibliographic Info

    Article provided by Oxford University Press in its journal Industrial and Corporate Change.

    Volume (Year): 21 (2012)
    Issue (Month): 4 (August)
    Pages: 1011-1048

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    Handle: RePEc:oup:indcch:v:21:y:2012:i:4:p:1011-1048

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    Cited by:
    1. Marco Vivarelli, 2013. "Is entrepreneurship necessarily good? Microeconomic evidence from developed and developing countries," Industrial and Corporate Change, Oxford University Press, Oxford University Press, vol. 22(6), pages 1453-1495, December.
    2. Francesco Quatraro & Marco Vivarelli, 2013. "Entry and Post-Entry Dynamics in Developing Countries," GREDEG Working Papers, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis 2013-20, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis.
    3. Marco Vivarelli, 2012. "Entrepreneurship and Post-Entry Performance: the Microeconomic Evidence," DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE) dises1286, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    4. Quatraro, Francesco & Vivarelli, Marco, 2013. "Entrepreneurship In A Developing Country Context," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201314, University of Turin.
    5. Quatraro, Francesco & Vivarelli, Marco, 2013. "Drivers of Entrepreneurship and Post-Entry Performance of Newborn Firms in Developing Countries," IZA Discussion Papers 7436, Institute for the Study of Labor (IZA).
    6. H. Fryges & M. Wright, 2013. "The origin of spin-offs – A typology of corporate and academic spin-offs," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium, Ghent University, Faculty of Economics and Business Administration 13/864, Ghent University, Faculty of Economics and Business Administration.
    7. Vivarelli, Marco, 2012. "Drivers of entrepreneurship and post-entry performance : microeconomic evidence from advanced and developing countries," Policy Research Working Paper Series, The World Bank 6245, The World Bank.

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