Network and firm antecedents of spin-offs: Motherhooding spin-offs
AbstractWe advance firm and network conditions that are favorable for the gestation of new spin-offs by entrepreneurial employees that exit the mother firm to constitute their own companies. This type of entrepreneurial activity has some unique characteristics. We suggest that spin-offs from certain parent firms have fundamental network benefits that increase their likelihood of survival and success. These benefits accrue on the form of social resources and a unique embeddedness in networks of other offspring and mother firms, and do not require the spin-offs to engage in any direct exchanges with the parent firm. The process which we call 'motherhood' highlights the potential for a mother-progeny and child-child model that promotes entrepreneurial action through spin-offs, and allow us to understand the conditions under which interorganizational networks of firms emerge and thrive as an entrepreneurial process. We conclude that considering a motherhood process, with the characteristics defined in this paper, contributes to the study of entrepreneurship and network evolution.
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Bibliographic InfoPaper provided by Universidade do Porto, Faculdade de Economia do Porto in its series FEP Working Papers with number 201.
Length: 30 pages
Date of creation: Feb 2006
Date of revision:
Entrepreneurship; spin-offs; motherhood; network benefits;
Find related papers by JEL classification:
- M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
- D02 - Microeconomics - - General - - - Institutions: Design, Formation, and Operations
- D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
- D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-02-12 (All new papers)
- NEP-ENT-2006-02-12 (Entrepreneurship)
- NEP-SOC-2006-02-12 (Social Norms & Social Capital)
- NEP-TID-2006-02-12 (Technology & Industrial Dynamics)
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