Survival and performance of strategic restructuring spin-offs and necessity spin-offs

Thomas Roslyng Olesen, Agnieszka Urszula Nowinska

Research output: Contribution to journalConference article in JournalResearchpeer-review

Abstract

In the past decade, researchers have increasingly explored the performance of spin-offs created by events that adversely affected the incumbent. Extant literature has, however, mainly focused on employee made necessity spin-offs, while the post entry performance of incumbent made strategic restructuring spin-offs has largely been ignored. This may result in an overestimation of the performance of the former type of spin off. In the current study, we explore the post entry performance and survivability of 26 strategic restructuring and necessity spin-offs from four Danish shipyard closures over almost four decades. We find that strategic restructuring spin-offs outperform necessity spin-offs on several growth parameters including turnover and employment. Surprisingly, we also find strategic restructuring spin offs to have higher survival rate than the necessity spin-offs. The study adds to our knowledge on the relationship between spin-off type and firm growth and suggest that further attention should be given to spin-offs created in strategic restructurings.

Original languageEnglish
JournalAcademy of Management Proceedings
Volume2021
Issue number1
ISSN2151-6561
DOIs
Publication statusPublished - 1 Sept 2021
EventAnnual Meeting of the Academy of Management 2021 : Bringing the Manager Back in Management - Online, United States
Duration: 29 Jul 20214 Aug 2021
https://aom.org/events/annual-meeting

Conference

ConferenceAnnual Meeting of the Academy of Management 2021
LocationOnline
Country/TerritoryUnited States
Period29/07/202104/08/2021
Internet address

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