Session 271

Spinouts

Track I

Date: Tuesday, October 6, 2015

Track F

Time: 17:30 – 18:45

Paper

Room: Governor's Square 16


Session Chair:

  • Emilie Feldman, University of Pennsylvania

Title: Casting Shadows: Effect of Parent-Spinout Knowledge Distance on New Venture Alliances

Authors

  • Shweta Gaonkar, Johns Hopkins University

Abstract: This study examines the role of founders’ prior employer (parent) in shaping the alliance network of firms founded by employees (spinouts) using an unique panel data of pharmaceutical and medical device firms from 1986 to 2012. I find that the spinouts that differ from their parent, for commercialization ties with firms that have direct/indirect parent ties. While spinouts that are similar for marketing, manufacturing and funding ties with partners that have no ties to the parent.

Title: Corporate Spinoffs and the Efficiency of Resource Allocation Decisions

Authors

  • Emilie Feldman, University of Pennsylvania

Abstract: This paper analyzes the efficiency of resource allocation decisions in firms that undertake spinoffs. In general, resource allocation decisions become more efficient following the completion of a spinoff. These gains are more pronounced the more a spinoff improves the focus of managerial attention, but they are less pronounced the more organizational adjustments are necessitated by that deal. When the organizational adjustments required by a spinoff are significant, the costs associated with the dissipation of managerial attention outweigh the benefits of increased focus. The contributions of this study are to identify a set of organizational adjustment costs associated with spinoffs and to explore how the tradeoff between the creation and consumption of managerial attention influences the efficiency of resource allocation decisions within diversified firms.

Title: Sawing Off Dead Branches: Proactive Divestiture and Innovation Performance

Authors

  • Kyung Suk Lee, Seoul National University
  • Dong-Kee Rhee, Seoul National University
  • Taewoo Roh, Soonchunhyang University

Abstract: We explore the relationship between post-divestiture firm and innovation performance in the high-tech industries. The article introduces alternative view on divestiture oppose to traditional viewpoint which explains divestiture as a reaction due to resolve internal problems. Detached from such pressure, this paper argues that firms engaging in innovative activities as a proactive action. Research is conducted by examining R&D intensity and patents to discuss R&D input and output that is associated with result of divestiture. Furthermore, firm size and transaction volume were presented to moderate the effect of innovation performance within post-divestiture firms. Our result shows that proactive post-divestiture firms had increase in both R&D input and output. Moreover, as firms were smaller in size and resulted in high transaction volume further improved innovation performance.

Title: Spin-Offs As Core Vehicles for External Knowledge Sourcing and Strategic Renewal: An Attention-Based View

Authors

  • Roman Sauer, University of St. Gallen
  • Karolin Frankenberger, University of Lucerne
  • Bernhard Lingens, University of St. Gallen

Abstract: This study explores corporate spin-off initiatives as core vehicles for strategic renewal in incumbent firms. In contrast to prior research that considers spin-offs as a means to exploit knowledge inherited from the parent firm, we investigate how spin-offs are used for the exploration of knowledge. Research implies that firms will seize novel resources if their attention is directed to the external environment. Following the attention-based view of the firm, a favorable organizational set-up has to be established. Therefore, we first study the organizational structures of four spin-off initiatives, how these affected the regulation of attention and, in turn, influenced the spin-off initiative in acquiring new knowledge.. Based on an in-depth study of four cases, we contribute to literature on strategic renewal, spin-offs and the attention-based view.

All Sessions in Track I...

Sun: 08:00 – 09:15
Session 276: K&I Sunday Panel: Big Data & Analytics in Strategy
Sun: 09:45 – 11:00
Session 277: K&I Foundations Session: A Conversation with Dan Levinthal
Sun: 11:15 – 12:30
Session 278: K&I Sunday Panel: Knowledge and Innovation in models of Business Models
Sun: 16:15 – 17:30
Session 104: Resource Allocation and Innovation
Session 261: Knowledge Creation and Sharing in Virtual Communities
Sun: 17:45 – 00:00
Session 317: Knowledge and Innovation Business Meeting
Mon: 08:00 – 09:15
Session 62: Multi-level perspectives on capability development
Session 105: Sourcing Strategies for Knowledge
Session 256: Innovation and the Strategy-Performance Relationship
Mon: 11:15 – 12:30
Session 203: Post Acquisition Learning
Session 204: Acquiring human capital: Process and outcomes
Mon: 13:45 – 15:00
Session 107: Evolving Industries, Evolving Products
Session 205: Knowledge Recombination and Interdependencies
Mon: 16:45 – 18:00
Session 100: Innovation Management in Networks, Ecosystems, and Innovation Hubs
Session 200: Strategic Leadership, Learning, and Exploration
Tue: 08:00 – 09:15
Session 136: Innovating and Learning in Collaborative Alliances
Session 255: Processes for Innovation and Ideation
Tue: 11:00 – 12:15
Session 101: Strategic Patenting
Session 137: Entrepreneurial Experience and Cognition: Implications for Venture Performance
Tue: 14:15 – 15:30
Session 198: Emerging Market Strategies
Session 206: Knowledge Replication, Transfer and Absorption
Tue: 15:45 – 17:00
Session 17: Human Capital and Entrepreneurship
Session 108: Open Innovation: Antecedents and Performance Effects
Session 262: Pioneering Knowledge
Tue: 17:30 – 18:45
Session 60: Blurring the Boundaries of Strategy Work
Session 202: Team Dynamics and Creativity
Session 271: Spinouts

All Sessions in Track F...

Sun: 08:00 – 09:15
Session 193: Phenomenon-driven Research in Strategic Management
Sun: 09:45 – 11:00
Session 221: Reflecting on the scope of the firm: New avenues for future research
Sun: 11:15 – 12:30
Session 194: The State and Future of Disciplinary Research in Strategic Management
Sun: 16:15 – 17:30
Session 113: Serial Acquisitions: Strategies and Processes
Sun: 17:45 – 00:00
Session 314: Corporate Strategy Business Meeting
Mon: 08:00 – 09:15
Session 111: Portfolio Management: Diversification and Divestitures
Session 176: Different Perspectives Informing Governance Choices: Partner Choice in Alliances vs. Acquisitions
Mon: 11:15 – 12:30
Session 195: Where Are the Boundaries of Strategic Management Research?
Session 210: M&A/JV Implementation
Mon: 16:45 – 18:00
Session 112: Acquisitions - Before the Deal
Session 243: Competitive Dynamics and Market Positioning
Tue: 08:00 – 09:15
Session 115: Horizontal and Vertical Scope: Interactions and Embeddedness
Session 272: Competitive Dimensions of Firm Boundary and Location Decisions
Tue: 11:00 – 12:15
Session 117: Issues and Answers for the Diversified Firm
Session 145: Strategic Leadership and Corporate Strategy
Tue: 14:15 – 15:30
Session 58: Corporate VCs and spin-outs
Session 116: Acquisitions - After the Deal
Session 267: Healthcare Industry Dynamics, Relationships, and Activities
Tue: 15:45 – 17:00
Session 110: Models of Corporate Strategies
Tue: 17:30 – 18:45
Session 114: The Interplay Between Financial Markets & Advisors and the Acquiring Firm
Session 271: Spinouts


Strategic Management Society

Denver