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

Previous literature reports spin-off firms being important agents of knowledge transfer from established corporations to new businesses, thus promoting the prosperity and well-being of regions, industry clusters and nations (Roberts & Wainer, 1969; Lindholm-Dahlstrand, 1997). Spinning off ventures often results in the emergence of networks where the parent firms and their spin-offs engage in varying degrees of resource sharing. However, relatively little is known about the processes through which the networks consisting of the parent firm and its spin-off firms come into being. Perhaps because of this reason, there is some confusion in the usage of the term corporate spin-off firm. In some studies, this term is used to denote embryonic ventures, while other studies reserve the term for the divestment of mature businesses. This study aims at fulfilling some of these gaps in existing knowledge by creating a holistic typology of corporate spin-off firms based on their evolution patterns as they move from internal corporate ventures into independent businesses