Article: Do direct or indirect relations between incumbent firms and corporate spin-offs affect the performance of spin-offs? Journal: International Journal of Entrepreneurial Venturing (IJEV) 2009 Vol.1 No.2 pp.147 - 163 Abstract: This article focuses on the performance of corporate spin-offs. The existing literature agrees that corporate spin-offs perform better than independent start-ups. However, systematic evidence on the subject still seems elusive. We therefore review articles that specifically address the performance of corporate spin-offs. Furthermore, we argue there is a need to distinguish between different types of spin-offs when evaluating their performances relative to independent start-ups. In particular, not all spin-offs have the fortune of access to parts of the resource base of their incumbent firm. We therefore suggest a distinction between whether the spin-off has direct or only indirect relations with their incumbent firm. A Danish sample of 325 companies (spinoffs and independent start-ups) shows that spin-offs in general perform better than independent start-ups. In the group of spin-offs, performance differences also exist. Spin-offs with indirect relations to an incumbent firm perform better than spin-offs with direct relations. Inderscience Publishers - linking academia, business and industry through research

Title: Do direct or indirect relations between incumbent firms and corporate spin-offs affect the performance of spin-offs?

Authors: Majbritt Rostgaard Evald, Ann Hojbjerg Clarke, Kent Wickstrom Jensen

Addresses: Department of Entrepreneurship and Relationship Management, University of Southern Denmark, Engstien 1, DK-6000 Kolding, Denmark. ' Department of Entrepreneurship and Relationship Management, University of Southern Denmark, Engstien 1, DK-6000 Kolding, Denmark. ' Department of Entrepreneurship and Relationship Management, University of Southern Denmark, Engstien 1, DK-6000 Kolding, Denmark

Abstract: This article focuses on the performance of corporate spin-offs. The existing literature agrees that corporate spin-offs perform better than independent start-ups. However, systematic evidence on the subject still seems elusive. We therefore review articles that specifically address the performance of corporate spin-offs. Furthermore, we argue there is a need to distinguish between different types of spin-offs when evaluating their performances relative to independent start-ups. In particular, not all spin-offs have the fortune of access to parts of the resource base of their incumbent firm. We therefore suggest a distinction between whether the spin-off has direct or only indirect relations with their incumbent firm. A Danish sample of 325 companies (spinoffs and independent start-ups) shows that spin-offs in general perform better than independent start-ups. In the group of spin-offs, performance differences also exist. Spin-offs with indirect relations to an incumbent firm perform better than spin-offs with direct relations.

Keywords: corporate spin-offs; divestment spin-offs; entrepreneurial spin-offs; independent start-ups; incumbent firms; direct relations; indirect relations; performance measures; Denmark.

DOI: 10.1504/IJEV.2009.029101

International Journal of Entrepreneurial Venturing, 2009 Vol.1 No.2, pp.147 - 163

Published online: 04 Nov 2009 *

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Title: Do direct or indirect relations between incumbent firms and corporate spin-offs affect the performance of spin-offs?

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