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Hostile Parent Firms and Child Firm Performance

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  • Walter, Sascha
  • Heinrichs, Simon
  • Walter, Achim

Abstract

We investigated how and when parent hostility (degree to which a parent firm disapproves the spawning of an own spin-out) affects spin-out performance and how spin-outs can effectively react to it. Analyses of 144 technology spin-outs support our arguments that spin-outs suffer from hostility. Hostility consequences are, however, less severe if market turbulence is high or if the spin-out pursues effective network development.

Suggested Citation

  • Walter, Sascha & Heinrichs, Simon & Walter, Achim, 2013. "Hostile Parent Firms and Child Firm Performance," EconStor Preprints 68592, ZBW - Leibniz Information Centre for Economics.
    • Handle: RePEc:zbw:esprep:68592
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    Keywords

    parent-child relationship;

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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