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Network and firm antecedents of spin-offs: Motherhooding spin-offs

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Author Info

  • Manuel Portugal Ferreira

    ()
    (Escola Superior de Tecnologia e Gestão, Instituto Politécnico de Leiria)

  • Ana Teresa Tavares

    ()
    (CEMPRE, Faculdade de Economia, Universidade do Porto)

  • William Hesterly

    ()
    (David Eccles School of Business, The University of Utah)

  • Sungu Armagan

    ()
    (David Eccles School of Business, The University of Utah)

Abstract

We 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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File URL: http://www.fep.up.pt/investigacao/workingpapers/06.02.08_WP201_ferreiretal.pdf
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Bibliographic Info

Paper provided by Universidade do Porto, Faculdade de Economia do Porto in its series FEP Working Papers with number 201.

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Length: 30 pages
Date of creation: Feb 2006
Date of revision:
Handle: RePEc:por:fepwps:201

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Keywords: Entrepreneurship; spin-offs; motherhood; network benefits;

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  1. Klepper, Steven, 2001. "Employee Startups in High-Tech Industries," Industrial and Corporate Change, Oxford University Press, vol. 10(3), pages 639-74, September.
  2. Wiggins, Steven N, 1995. "Entrepreneurial Enterprises, Endogenous Ownership, and the Limits to Firm Size," Economic Inquiry, Western Economic Association International, Western Economic Association International, vol. 33(1), pages 54-69, January.
  3. Constance E. Helfat & Marvin B. Lieberman, 2002. "The birth of capabilities: market entry and the importance of pre-history," Industrial and Corporate Change, Oxford University Press, vol. 11(4), pages 725-760, August.
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  6. Desir�e Blankenburg Holm & Kent Eriksson & Jan Johanson, 1996. "Business Networks and Cooperation in International Business Relationships," Journal of International Business Studies, Palgrave Macmillan, vol. 27(4), pages 1033-1053, December.
  7. Jeffrey H Dyer & Wujin Chu, 2000. "The Determinants of Trust in Supplier-Automaker Relationships in the U.S., Japan and Korea," Journal of International Business Studies, Palgrave Macmillan, vol. 31(2), pages 259-285, June.
  8. Daniel A. Levinthal, 1997. "Adaptation on Rugged Landscapes," Management Science, INFORMS, INFORMS, vol. 43(7), pages 934-950, July.
  9. Cooper, Arnold C., 1985. "The role of incubator organizations in the founding of growth-oriented firms," Journal of Business Venturing, Elsevier, vol. 1(1), pages 75-86.
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Cited by:
  1. Inger Pettersen & Anita Tobiassen, 2012. "Are born globals really born globals? The case of academic spin-offs with long development periods," Journal of International Entrepreneurship, Springer, Springer, vol. 10(2), pages 117-141, June.

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