A corporation's culture as an impetus for spinoffs and a driving force of industry evolution
In infant industries, a great share of new market opportunities is depleted by firms that spinoff from incumbents. A model emphasizing the relation between incumbents' evolving corporate cultures and the generation of spinoffs explains this regularity in industry evolution. Organizations reach...
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| Main Authors: | , , |
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| Format: | Book/Monograph Working Paper |
| Language: | English |
| Published: |
Jena
Max-Planck-Inst. für Ökonomik
2011
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| Series: | Papers on economics and evolution
1111 |
| In: |
Papers on economics and evolution (1111)
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| Subjects: | |
| Online Access: | Verlag, Volltext: ftp://papers.econ.mpg.de/evo/discussionpapers/2011-11.pdf Download aus dem Internet, Stand: 01.09.2011, Volltext: http://hdl.handle.net/10419/57551 
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| Author Notes: | Christian Cordes, Peter J. Richerson and Georg Schwesinger |
| Summary: | In infant industries, a great share of new market opportunities is depleted by firms that spinoff from incumbents. A model emphasizing the relation between incumbents' evolving corporate cultures and the generation of spinoffs explains this regularity in industry evolution. Organizations reach a critical size that entails the collapse of a cooperative culture and triggers the exodus of personnel founding own firms. Thereby, organizations with a cooperative culture active in a dynamic business environment provide ideal training grounds for potential founders. We relate our findings to empirical evidence on developmental patterns in industries, such as genealogies and performance of spinoffs. -- Spinoff Formation ; Critical Firm Size ; Firm Performance ; Industry Evolution ; Corporate Culture |
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| Physical Description: | Online Resource |
| Format: | Systemvoraussetzungen: Acrobat Reader. |