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Bringing It All Back Home: Corporate Venturing and Renewal Through Spin-ins

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  • Richard A. Hunt
  • David M. Townsend
  • Elham Asgari
  • Daniel A. Lerner

Abstract

More often than not, corporate acquisitions are expensive and difficult, especially those transacted for the purpose of advancing the aims of corporate entrepreneurship (CE). Motivated by frequent, high-cost failures, firms are experimenting with novel organizational structures and fresh approaches to acquisition-driven CE. In this study, we examine the effectiveness of corporate spin-ins—acquisitions in which the acquired company is founded by former employees of the acquiring firm—in resolving key challenges of CE-motivated acquisitions Using a matched pairwise dataset of spin-in and non-spin-in acquisitions, we discover that spin-ins generate superior outcomes, positioning them as a high-potential facet of CE portfolios.

Suggested Citation

  • Richard A. Hunt & David M. Townsend & Elham Asgari & Daniel A. Lerner, 2019. "Bringing It All Back Home: Corporate Venturing and Renewal Through Spin-ins," Entrepreneurship Theory and Practice, , vol. 43(6), pages 1166-1193, November.
    • Handle: RePEc:sae:entthe:v:43:y:2019:i:6:p:1166-1193
    DOI: 10.1177/1042258718778547
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    2. Kaveh Bastani & Elham Asgari & Hamed Namavari, 2018. "Wide and Deep Learning for Peer-to-Peer Lending," Papers 1810.03466, arXiv.org, revised Oct 2018.
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