Purpose – Literature on spin‐offs still lacks a thorough understanding of the forces governing spin‐off performance. The purpose of this paper is to fill this gap by taking a network perspective. Design/methodology/approach – The paper combines the literature on spin‐offs with the network approach to new ventures to proposing a model showing how networking in the pre‐entry phases affects a spin‐off's survival and early growth. Findings – The intensity and variety of interactions between the future entrepreneur (FE) and other individual actors has a positive impact on spin‐off performance in both the incubation and the emergence phases. The degree of overlap between the network of the incubation phase and the network of the emergence phase also reinforces the effects of the intensity and variety of these interactions on performance during the emergence phase. Finally, entrepreneurial innovativeness is an antecedent of spin‐off performance in that it requires different degrees of overlap between the network of the incubation phase and the network of the emergence phase. Research limitations/implications – Being a conceptual paper, the study needs the support of empirical research. For example, samples of spin‐offs achieving a high and low performance could be compared in relation to their FE's networking activity. Originality/value – The paper creates a bridge between the inherited knowledge approach to spin‐offs and the network approach to new ventures to provide a framework for explaining spin‐off performance.
Journal of Small Business and Enterprise Development – Emerald Publishing
Published: Aug 12, 2014
Keywords: Relationships; Spin‐off; Network; New venture; Entrepreneurial innovation; Inherited knowledge
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