American Journal of Applied Sciences

MAY PARENTS INHERIT FROM HEIRS? TOWARDS AN UNDERSTANDING OF THE PARENT-SPUN-OFF RELATIONSHIP

Federica Brunetta and Enzo Peruffo

DOI : 10.3844/ajassp.2014.921.928

American Journal of Applied Sciences

Volume 11, Issue 6

Pages 921-928

Abstract

Spin-offs create financially and administratively stand-alone units that hold a strong affiliation with the parent firm due to the concurrence of the ownership structure. So far, few studies have adopted a process perspective to investigate on the value creation of spin off transactions. We argue that spin-off generation does not constitute firm failures, as parents have clear channels to appropriate values of network structure from their spun-off units. We use a network perspective on inter-firm collaboration to observe parent-spun-off unit relationship and develop research propositions to shed new light on the mechanisms that drive the post spin-off events.

Copyright

© 2014 Federica Brunetta and Enzo Peruffo. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.