TY - JOUR
T1 - Knowledge relatedness and post-spin-off growth
AU - Sapienza, Harry J.
AU - Parhankangas, Annaleena
AU - Autio, Erkko
PY - 2004/11/1
Y1 - 2004/11/1
N2 - In this article, we examine the effects of knowledge relatedness on the post-spin-off growth of firms spun off from industrial parent firms. We predict that growth is maximized when the knowledge base of the spin-off firm partially overlaps with that of its parent. This effect is due to learning: both too small and too great an overlap will inhibit growth, the first because limited knowledge overlap hampers local search and knowledge assimilation and the second because great knowledge overlap hampers the creation of novel knowledge combinations. The propositions are tested and confirmed using a sample of 54 industrial spin-off firms from Finland.
AB - In this article, we examine the effects of knowledge relatedness on the post-spin-off growth of firms spun off from industrial parent firms. We predict that growth is maximized when the knowledge base of the spin-off firm partially overlaps with that of its parent. This effect is due to learning: both too small and too great an overlap will inhibit growth, the first because limited knowledge overlap hampers local search and knowledge assimilation and the second because great knowledge overlap hampers the creation of novel knowledge combinations. The propositions are tested and confirmed using a sample of 54 industrial spin-off firms from Finland.
KW - Industrial parent firms
KW - Knowledge relatedness
KW - Post-spin-off growth
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U2 - 10.1016/j.jbusvent.2003.06.002
DO - 10.1016/j.jbusvent.2003.06.002
M3 - Article
AN - SCOPUS:4344655239
SN - 0883-9026
VL - 19
SP - 809
EP - 829
JO - Journal of Business Venturing
JF - Journal of Business Venturing
IS - 6
ER -