Spawned with a rusty spoon:when and how can spin-outs cope with parent hostility?

Walter, Sascha and Heinrichs, Simon and Walter, Achim (2013) Spawned with a rusty spoon:when and how can spin-outs cope with parent hostility? Academy of Management Annual Meeting Proceedings. ISSN 2151-6561

Abstract

Prior research has focused on the performance implications of positive or neutral parent-child relationships, but neglected negative, conflict-laden relationships. Drawing on embeddedness theory, we investigated whether and when parent hostility (degree to which a parent firm disapproves the spawning of an own spin-out) affects spin-out performance and how spin-outs can effectively react to it. Analyses of 144 technology spin-outs support our arguments that spin-outs suffer from hostility. Hostility consequences are, however, less severe if market turbulence is high or if the spin-out pursues effective network development.