Success factors of corporate spin-offs - 2

Corporate Spin-Off processes are very interesting phenomena for management theory and practice.

In theory, Corporate Spin-Offs are both a driver and a result of organisational change, offering the possibility to investigate an area where companies are genuinely sharing experience and best practice.

Although Corporate Spin-Offs can be clearly distinguished from other types of start-ups and divestments and despite combining key-characteristics in a unique way, existing investigation is sparse and heterogeneous.

In practice, Corporate Spin-Off processes are frequent and highly successful, but not as well-regarded as Merger & Acquisition strategies and less understood by the decision-makers.The present work was designed to meet these demands by analysing the success factors of Corporate Spin-Offs, their relative contribution to the process and the role of the different actors involved.

Based on an extensive literature review and a new Spin-Off typology, a broad range of success factors and success dimensions is proposed.

Using a combination of multivariate models, the responses from 211 European companies to a questionnaire are analysed and typologies derived.Among the single factors, customer participation, the transfer of managerial and market-related experience and the main motivation are the most important ones for the Spin-Off process and its success.

The typologies reveal characteristic factors sets, showing for example that high-growth Spin-Offs benefited over-proportionally from sector growth or the access to relations with customers or suppliers.

This produces a new and comprehensive perspective on the relative contribution of each success factor, their interaction, and the behaviour of both the parent and the Spin-Off companies in the process.

These results are highly valuable for managers, scientists in the field and policy-makers.