IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/5563.html
   My bibliography  Save this paper

Combining spin-out and spin-in activities – the spin-along approach

Author

Listed:
  • Rohrbeck, Rene
  • Döhler, Mario
  • Arnold, Heinrich M.

Abstract

After a long period of restructuring and outsourcing, companies are increasingly looking for new growth opportunities. Growth with existing prod-ucts or by expansion in new markets is limited. Therefore, companies are searching for ways to expand their activities in new businesses. A frequently used tool of multinational enterprises is corporate venturing. Within cor-porate venturing a further differentiation can be made in internal venturing and external venturing. Internal venturing promotes business ideas generated within the organization whereas external venturing promotes business ideas developed outside the company. Research has been able to show that venturing activi-ties both internal and external can create value. In this paper we explore a special case of venturing which we call the ‘spin-along approach’. It can be seen as a combination of internal and external ven-turing. In the spin-along approach, a company encourages its employees to take their business idea external and to found a company. Successful companies might later be bought back and integrated into the parent company or the paren-tal will exit the company by selling its equity share. Through literature re-view we have identified different motivations, best practices, and barriers to the successful implementation of a spin-along approach. Furthermore, two case studies will be discussed and compared. We conclude that the approach can successfully complement internal innovation management.

Suggested Citation

  • Rohrbeck, Rene & Döhler, Mario & Arnold, Heinrich M., 2007. "Combining spin-out and spin-in activities – the spin-along approach," MPRA Paper 5563, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:5563
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/5563/1/MPRA_paper_5563.pdf
    File Function: original version
    Download Restriction: no

    References listed on IDEAS

    as
    1. Zahra, Shaker A., 1996. "Technology strategy and new venture performance: A study of corporate-sponsored and independent biotechnology ventures," Journal of Business Venturing, Elsevier, vol. 11(4), pages 289-321, July.
    2. Dushnitsky, Gary & Lenox, Michael J., 2005. "When do incumbents learn from entrepreneurial ventures?: Corporate venture capital and investing firm innovation rates," Research Policy, Elsevier, vol. 34(5), pages 615-639, June.
    3. Thomas Keil, 2004. "Building External Corporate Venturing Capability," Journal of Management Studies, Wiley Blackwell, vol. 41(5), pages 799-825, July.
    4. Dushnitsky, Gary & Lenox, Michael J., 2006. "When does corporate venture capital investment create firm value?," Journal of Business Venturing, Elsevier, vol. 21(6), pages 753-772, November.
    5. Cohen, Wesley M & Levin, Richard C & Mowery, David C, 1987. "Firm Size and R&D Intensity: A Re-examination," Journal of Industrial Economics, Wiley Blackwell, vol. 35(4), pages 543-565, June.
    6. Jagersma, Pieter Klaas & van Gorp, Desiree M., 2003. "Spin-out management: theory and practice," Business Horizons, Elsevier, vol. 46(2), pages 15-24.
    7. Thornberry, Neal, 2001. "Corporate entrepreneurship:: antidote or oxymoron?," European Management Journal, Elsevier, vol. 19(5), pages 526-533, October.
    8. Wesley M. Cohen & Richard C. Levin & David C. Mowery, 1987. "Firm Size and R&D Intensity: A Re-Examination," NBER Working Papers 2205, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:wsi:ijimxx:v:18:y:2014:i:03:n:s1363919614400076 is not listed on IDEAS

    More about this item

    Keywords

    Corporate venturing; spin-along; venture leader; spin-out; spin-in; Deutsche Telekom Laboratories; Cisco Systems;

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M0 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:5563. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter). General contact details of provider: http://edirc.repec.org/data/vfmunde.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.