"The Implications of Parent Firm Ownership for Competence Development in Divested New Ventures"

Authors

Annaleena Parhankangas, Pia Arenius, and Tomi Laamanen

Abstract

This study explores the implications of corporate spin-off arrangements for the evolution and growth of the spin-off firm. Relying on the resource-based view of the firm and the property rights theory, the emphasis of the present study is on the interplay between the parent firmís level of ownership, and the selection of competencies to be developed in the new venture, and the financial outcome of these developments. The results tentatively suggest that the characteristics of the spin-off venture predict disintegration process characteristics, which, in turn, are associated with the subsequent evolution and growth of the new venture. The present study gives reason to believe that ownership changes throughout the life of the venture may have indirect and direct impact on both the direction and magnitude of competence development in the venture.

[click here for the abstract and paper at Babson College]

Citation

Annaleena Parhankangas, Pia Arenius, and Tomi Laamanen, "The Implications of Parent Firm Ownership for Competence Development in Divested New Ventures", Proceedings of the 19th Annual Entrepreneurship Research Conference, (1999), Babson College.

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