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Journal Article

Knowledge Transfer through Inheritance: Spin-out Generation, Development, and Survival

Rajshree Agarwal, Raj Echambadi, April M. Franco and Mb Sarkar
The Academy of Management Journal
Vol. 47, No. 4 (Aug., 2004), pp. 501-522
Published by: Academy of Management
Stable URL: http://www.jstor.org/stable/20159599
Page Count: 22
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Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Knowledge Transfer through Inheritance: Spin-out Generation, Development, and Survival
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Abstract

We investigated how the knowledge capabilities of industry incumbents affected the generation, development, and performance of "spin-outs" (entrepreneurial ventures of ex-employees). Analyses of 1977-97 data from the disk drive industry supported our hypothesis that incumbents with both strong technological and market pioneering know-how generate fewer spin-outs than firms with strength in only one of these areas. Also, an incumbent's capabilities at the time of a spin-out's founding positively affect the spin-out's knowledge capabilities and its probability of survival.

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