From a corporate venture to an independent company: a base for a taxonomy for corporate spin-off firms

Abstract

This paper proposes a taxonomy of corporate spin-off firms by exploring the nature of parent firm–spin-off firm relationship. Relying on the resource-based and the resource-dependence theory, special attention is paid to the complementarity of the resource base of the parent firm relative to its spin-off, the intensity of collaboration between the parent and the spin-off, and the dependence of the spin-off firm on the resources provided by the parent organization. Based on cluster analysis, we were able to identify three distinct groups of corporate spin-off firms: spin-offs developing new technologies, spin-offs serving new markets and restructuring spin-offs. These groups differ from one another in terms of the intensity of resource sharing linkages and knowledge transfer between the parent and the spin-off, timing of separation, as well as the direction and breadth of their new product development activities.