Survival and Performance of Strategic Restructuring Spin-offs and Necessity Spin-offs

Thomas Roslyng Olesen, Agnieszka Nowinska

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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
Title of host publicationProceedings of the Eighty-first Annual Meeting of the Academy of Management
EditorsSonia Taneja
Number of pages1
Place of PublicationBriarcliff Manor, NY
PublisherAcademy of Management
Publication date2021
DOIs
Publication statusPublished - 2021
EventThe Academy of Management Annual Meeting 2021: Bringing the Manager Back in Management - Online
Duration: 29 Jul 20214 Aug 2021
Conference number: 81
https://aom.org/events/annual-meeting

Conference

ConferenceThe Academy of Management Annual Meeting 2021
Number81
LocationOnline
Period29/07/202104/08/2021
Internet address
SeriesAcademy of Management Proceedings
ISSN2151-6561

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