What do I Take with Me: The Impact of Transfer and Replication of Resources on Parent and Spin-Out Firm Performance

35 Pages Posted: 19 Feb 2011

See all articles by Rajshree Agarwal

Rajshree Agarwal

University of Maryland - Robert H. Smith School of Business

Benjamin A. Campbell

The Ohio State University - Fisher College of Business

April Franco

University of Toronto - Rotman School of Management; University of Toronto at Scarborough - Division of Management

Martin Ganco

University of Wisconsin - Madison - Department of Management and Human Resources

Date Written: February 1, 2011

Abstract

Focusing on entrepreneurial ventures created by employees leaving a firm, our study examines the differential impact of knowledge transfer and knowledge spillovers on both parent and spin-out performance. While extant research often uses knowledge transfer and spillover interchangeably, our study distinguishes between the two based on the rivalness of the relevant knowledge. We theorize that both knowledge transfer (proxied by the size of the exiting employee team) and knowledge spillovers (proxied by the experience of the exiting employee team) will aid spin-out performance. However, knowledge transfer, being more rival, will have a greater adverse impact than knowledge spillovers on parent firm performance. Using U.S. Census Bureau linked employee-employer data from the legal services industry, we find support for our hypotheses. Our study thus contributes to extant literature by highlighting a key dimension of knowledge - rivalness - and the differential competitive dynamics effect of resources with varying degrees of rivalness.

Suggested Citation

Agarwal, Rajshree and Campbell, Benjamin A. and Franco, April and Ganco, Martin, What do I Take with Me: The Impact of Transfer and Replication of Resources on Parent and Spin-Out Firm Performance (February 1, 2011). US Census Bureau Center for Economic Studies Paper No. CES-WP-11-06. Available at SSRN: https://ssrn.com/abstract=1762561 or http://dx.doi.org/10.2139/ssrn.1762561

Rajshree Agarwal

University of Maryland - Robert H. Smith School of Business ( email )

College Park, MD 20742-1815
United States

Benjamin A. Campbell (Contact Author)

The Ohio State University - Fisher College of Business ( email )

2100 Neil Avenue
Columbus, OH 43210-1144
United States

April Franco

University of Toronto - Rotman School of Management ( email )

105 St. George Street
Toronto, Ontario M5S 3E6 M5S1S4
Canada

University of Toronto at Scarborough - Division of Management ( email )

1265 Military Trial
Scarborough, Ontario M1C 1A4
Canada

Martin Ganco

University of Wisconsin - Madison - Department of Management and Human Resources ( email )

Madison, WI
United States

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