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Knowledge Transfer through Congenital Learning: Spin-Out Generation, Growth and Survival

Author

Listed:
  • Agarwal, Rajshree

    (U of Illinois at Urbana-Champaign)

  • Echambadi, Raj

    (U of Central Florida)

  • Franco, April M.

    (U of Iowa)

  • Sarkar, M. B.

    (U of Central Florida)

Abstract

This paper examines the role of knowledge as a driver of an organization's formation, and as a subsequent source of its competitive advantage. We investigate the parent-progeny knowledge transfer relationship, and the impact of this congenital learning on the evolution and performance of a spin-out (an entrepreneurial venture by an ex-employee). Using data from the disk drive industry, we show that incumbent knowledge capabilities, related to technology and market pioneering, predict spin-out formation. Parent's capabilities at the time of spin-out founding positively affect spin-out knowledge capabilities, and result in spin-outs having higher probabilities of survival relative to other entrants.

Suggested Citation

  • Agarwal, Rajshree & Echambadi, Raj & Franco, April M. & Sarkar, M. B., 2002. "Knowledge Transfer through Congenital Learning: Spin-Out Generation, Growth and Survival," Working Papers 02-0101, University of Illinois at Urbana-Champaign, College of Business.
    • Handle: RePEc:ecl:illbus:02-0101
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