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Organizational Synergy, Dissonance and Spinoffs

Author

Listed:
  • Mili Shrivastava

    (Entrepreneurship, Growth and Public Policy Group, Max Planck Institute of Economics, Jena)

  • T.V.S.Ramamohan Rao

    (Indian Institute of Technology, Kanpur)

Abstract

Spinoff firms are exceptional performers across industries. The causes for the emergence of spinoff firms are widely investigated in the literature. However, the role of teams for spinoffs has received little scholarly attention. On one hand, talented individuals may find it necessary to team up with others to utilize complementary knowledge and generate synergies. On the other hand, some types of team production environments may have dissonance and motivate individuals to leave the team. The present study demonstrates that organizational synergies and dissonance can be incorporated into appropriate specifications of team production functions. This framework explains the necessity to form a team, stability of teams, and the emergence of different types of spinoffs depending on specific organizational arrangements.

Suggested Citation

  • Mili Shrivastava & T.V.S.Ramamohan Rao, 2010. "Organizational Synergy, Dissonance and Spinoffs," Jena Economics Research Papers 2010-060, Friedrich-Schiller-University Jena.
    • Handle: RePEc:jrp:jrpwrp:2010-060
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    File URL: https://oweb.b67.uni-jena.de/Papers/jerp2010/wp_2010_060.pdf
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    References listed on IDEAS

    as
    1. Darren Filson & April Franco, 2000. "Knowledge diffusion through employee mobility," Staff Report 272, Federal Reserve Bank of Minneapolis.
    2. Casadesus-Masanell, Ramon & Spulber, Daniel F, 2000. "The Fable of Fisher Body," Journal of Law and Economics, University of Chicago Press, vol. 43(1), pages 67-104, April.
    3. C. M. Van Praag & J. S. Cramer, 2001. "The Roots of Entrepreneurship and Labour Demand: Individual Ability and Low Risk Aversion," Economica, London School of Economics and Political Science, vol. 68(269), pages 45-62, February.
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    Cited by:

    1. Rao, T.V.S. Ramamohan, 2011. "CES as an Organizational Production Function," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 46(1), pages 69-81.

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    More about this item

    Keywords

    Organizational synergy; Production functions; Spinoffs;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact

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