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'Don’t leave me this way!' Drivers of parental hostility and employee spin-offs’ performance

Egle Vaznyte, Petra Andries (UGent) and Sarah Demeulemeester
(2021) SMALL BUSINESS ECONOMICS. 57(1). p.265-293
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Abstract
Many entrepreneurs commercialize an idea they initially developed as employees of an incumbent firm. While some face retaliatory reactions from their (former) employer, others are left alone or even supported. It is not clear, however, why some employee spin-offs face parental hostility while others do not, and to what extent this parental hostility affects employee spin-offs’ performance. Integrating the resource-based view with insights on competition and retaliation, we propose that parental hostility increases with the (perceived) competitive threat posed by an employee spin-off. Specifically, we advance employee spin-offs’ initial strategic actions (offering substitute products, hiring employees of the parent, and attempting to first develop the idea inside the parent) as key drivers of parental hostility and consequent spin-off performance. Results from a pooled dataset of 1083 employee spin-offs in Germany confirm that these initial strategic actions trigger parental hostility, which in turn, and contrary to expectations, positively affects employee spin-offs’ innovation and economic performance. These results advance the literature on employee spin-offs in several ways and have important practical implications.
Keywords
Economics and Econometrics, General Business, Management and Accounting, Employee spin-offs, Product substitutability, Employee poaching, Intrapreneurial attempts, Parental hostility, Spin-off performance, CORPORATE VENTURE, FIRM FORMATION, START-UPS, KNOWLEDGE, MOBILITY, ENTREPRENEURSHIP, ENTRY, DISAGREEMENTS, CAPABILITIES, INNOVATION

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MLA
Vaznyte, Egle, et al. “‘Don’t Leave Me This Way!’ Drivers of Parental Hostility and Employee Spin-Offs’ Performance.” SMALL BUSINESS ECONOMICS, vol. 57, no. 1, 2021, pp. 265–93, doi:10.1007/s11187-019-00305-y.
APA
Vaznyte, E., Andries, P., & Demeulemeester, S. (2021). “Don’t leave me this way!” Drivers of parental hostility and employee spin-offs’ performance. SMALL BUSINESS ECONOMICS, 57(1), 265–293. https://doi.org/10.1007/s11187-019-00305-y
Chicago author-date
Vaznyte, Egle, Petra Andries, and Sarah Demeulemeester. 2021. “‘Don’t Leave Me This Way!’ Drivers of Parental Hostility and Employee Spin-Offs’ Performance.” SMALL BUSINESS ECONOMICS 57 (1): 265–93. https://doi.org/10.1007/s11187-019-00305-y.
Chicago author-date (all authors)
Vaznyte, Egle, Petra Andries, and Sarah Demeulemeester. 2021. “‘Don’t Leave Me This Way!’ Drivers of Parental Hostility and Employee Spin-Offs’ Performance.” SMALL BUSINESS ECONOMICS 57 (1): 265–293. doi:10.1007/s11187-019-00305-y.
Vancouver
1.
Vaznyte E, Andries P, Demeulemeester S. “Don’t leave me this way!” Drivers of parental hostility and employee spin-offs’ performance. SMALL BUSINESS ECONOMICS. 2021;57(1):265–93.
IEEE
[1]
E. Vaznyte, P. Andries, and S. Demeulemeester, “‘Don’t leave me this way!’ Drivers of parental hostility and employee spin-offs’ performance,” SMALL BUSINESS ECONOMICS, vol. 57, no. 1, pp. 265–293, 2021.
@article{8641582,
  abstract     = {{Many entrepreneurs commercialize an idea they initially developed as employees of an incumbent firm. While some face retaliatory reactions from their (former) employer, others are left alone or even supported. It is not clear, however, why some employee spin-offs face parental hostility while others do not, and to what extent this parental hostility affects employee spin-offs’ performance. Integrating the resource-based view with insights on competition and retaliation, we propose that parental hostility increases with the (perceived) competitive threat posed by an employee spin-off. Specifically, we advance employee spin-offs’ initial strategic actions (offering substitute products, hiring employees of the parent, and attempting to first develop the idea inside the parent) as key drivers of parental hostility and consequent spin-off performance. Results from a pooled dataset of 1083 employee spin-offs in Germany confirm that these initial strategic actions trigger parental hostility, which in turn, and contrary to expectations, positively affects employee spin-offs’ innovation and economic performance. These results advance the literature on employee spin-offs in several ways and have important practical implications.}},
  author       = {{Vaznyte, Egle and Andries, Petra and Demeulemeester, Sarah}},
  issn         = {{0921-898X}},
  journal      = {{SMALL BUSINESS ECONOMICS}},
  keywords     = {{Economics and Econometrics,General Business,Management and Accounting,Employee spin-offs,Product substitutability,Employee poaching,Intrapreneurial attempts,Parental hostility,Spin-off performance,CORPORATE VENTURE,FIRM FORMATION,START-UPS,KNOWLEDGE,MOBILITY,ENTREPRENEURSHIP,ENTRY,DISAGREEMENTS,CAPABILITIES,INNOVATION}},
  language     = {{eng}},
  number       = {{1}},
  pages        = {{265--293}},
  title        = {{'Don’t leave me this way!' Drivers of parental hostility and employee spin-offs’ performance}},
  url          = {{http://doi.org/10.1007/s11187-019-00305-y}},
  volume       = {{57}},
  year         = {{2021}},
}
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