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

Author

Listed:
  • 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.

Suggested Citation

  • Manuel Portugal Ferreira & Ana Teresa Tavares & William Hesterly & Sungu Armagan, 2006. "Network and firm antecedents of spin-offs: Motherhooding spin-offs," FEP Working Papers 201, Universidade do Porto, Faculdade de Economia do Porto.
  • Handle: RePEc:por:fepwps:201
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    File URL: http://www.fep.up.pt/investigacao/workingpapers/06.02.08_WP201_ferreiretal.pdf
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    References listed on IDEAS

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    1. 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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    5. Wiggins, Steven N, 1995. "Entrepreneurial Enterprises, Endogenous Ownership, and the Limits to Firm Size," Economic Inquiry, Western Economic Association International, vol. 33(1), pages 54-69, January.
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    7. Desirée Blankenburg Holm & Kent Eriksson & Jan Johanson, 1996. "Business Networks and Cooperation in International Business Relationships," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(4), pages 1033-1053, December.
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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, vol. 10(2), pages 117-141, June.

    More about this item

    Keywords

    Entrepreneurship; spin-offs; motherhood; network benefits;

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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