Research Article Open Access

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

Federica Brunetta1 and Enzo Peruffo1
  • 1 Department of Business and Management, LUISS Guido Carli University, Italy

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.

American Journal of Applied Sciences
Volume 11 No. 6, 2014, 921-928

DOI: https://doi.org/10.3844/ajassp.2014.921.928

Submitted On: 25 February 2014 Published On: 3 April 2014

How to Cite: Brunetta, F. & Peruffo, E. (2014). MAY PARENTS INHERIT FROM HEIRS? TOWARDS AN UNDERSTANDING OF THE PARENT-SPUN-OFF RELATIONSHIP. American Journal of Applied Sciences, 11(6), 921-928. https://doi.org/10.3844/ajassp.2014.921.928

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Keywords

  • Divesture
  • Parent Spun-off Relationshops
  • Network Analysis
  • Vicarious Learning