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Is success hereditary? Evidence on the performance of spawned ventures

Author

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  • Johannes Dick
  • Katrin Hussinger
  • Boris Blumberg
  • John Hagedoorn

Abstract

A common phenomenon in entrepreneurship is that employees turn away from employment to found their own businesses. Prior literature discusses the former employers’ characteristics that influence the creation of entrepreneurial ventures. An investigation of whether these characteristics also affect the success of the spawned ventures is missing so far. This paper contributes to the literature by showing that entrepreneurial ventures spawned by well performing firms are financially more successful than ventures stemming from poorly performing firms. This suggests that spawned entrepreneurs are able to exploit valuable knowledge from their previous employers which impacts their ventures’ performance positively. The analysis is based on a linked employee–employer data set for the Netherlands for the period 1999–2004. Copyright The Author(s) 2013

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  • Johannes Dick & Katrin Hussinger & Boris Blumberg & John Hagedoorn, 2013. "Is success hereditary? Evidence on the performance of spawned ventures," Small Business Economics, Springer, vol. 40(4), pages 911-931, May.
    • Handle: RePEc:kap:sbusec:v:40:y:2013:i:4:p:911-931
    DOI: 10.1007/s11187-011-9394-8
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    Cited by:

    1. Heger, Diana & Hussinger, Katrin, 2013. "External capital access and new product launch in start-up firms with uncertain intellectual property rights," ZEW Discussion Papers 13-095, ZEW - Leibniz Centre for European Economic Research.
    2. Hervas-Oliver, Jose-Luis & Lleo, María & Cervello, Roberto, 2017. "The dynamics of cluster entrepreneurship: Knowledge legacy from parents or agglomeration effects? The case of the Castellon ceramic tile district," Research Policy, Elsevier, vol. 46(1), pages 73-92.
    3. Broström, Anders & Lööf, Hans & Nabavi, Pardis, 2016. "Inherited Advantage and Spinoff Success," Working Paper Series in Economics and Institutions of Innovation 437, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    4. Diana Heger & Katrin Hussinger, 2017. "Implications of uncertain patent rights for German start-ups’ commercialisation activities and access to external capital," Industry and Innovation, Taylor & Francis Journals, vol. 24(7), pages 753-773, October.
    5. Rocha, Vera & Carneiro, Anabela & Varum, Celeste, 2015. "What explains the survival gap of pushed and pulled corporate spin-offs?," Economics Letters, Elsevier, vol. 126(C), pages 127-130.
    6. Forough Zarea Fazlelahi & J. Henri Burgers & Martin Obschonka & Per Davidsson, 2023. "Spinoffs’ alliance network growth beyond parental ties: performance diminishing, then performance enhancing," Asia Pacific Journal of Management, Springer, vol. 40(2), pages 743-773, June.
    7. Hussinger, Katrin & Dick, Johannes M.H. & Czarnitzki, Dirk, 2018. "Ownership concentration and innovativeness of corporate ventures," Research Policy, Elsevier, vol. 47(2), pages 527-541.

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    More about this item

    Keywords

    Entrepreneurship; Entrepreneurial spawning; Start-ups; Firm performance; L26; M13; L25;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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