In this paper we explore spin-off formation processes in the context of an adverse corporate event. While it is accepted that spin-off formation plays an important role in perpetuating industry evolution, we demonstrate that spin-offs resulting from adverse events do not fit into the existing typologies of spin-offs as suggested by Buensdorf and Klepper (2009) and Klepper and Thompson (2010). We argue that existing typologies should recognize what we refer to as “opportunistic spin-offs”, spin-offs that occur in the wake of an adverse event but that from the perspective of the founder, the adverse event has created an unexpected opportunity to engage in entrepreneurship.
O’Gorman, Colm; Curran, Declan; and van Egeraat, Chris
"SPIN-OFF FORMATION PROCESSES IN THE CONTEXT OF ADVERSE CORPORATE EVENTS (INTERACTIVE PAPER),"
Frontiers of Entrepreneurship Research: Vol. 33
, Article 8.
Available at: http://digitalknowledge.babson.edu/fer/vol33/iss16/8