Most entrepreneurs have a large amount of prior employment experience (Cooper, 1985; Cooper & Dunkelberg, 1986; Robinson & Sexton, 1994), and many potential entrepreneurs identify entrepreneurial opportunities from their previous job (Cooper et al., 1990). The phenomenon is called entrepreneurial spawning, which refers to a process that an existing firm generates a new firm established by one or more employees who departed from the existing firm (Habib et al., 2011). However, scholarly effort to provide comprehensive meta-analytic reviews on this topic has received relatively little attention from entrepreneurship scholars.

This paper aims to identify the effect of firms where entrepreneurs previously work on those who leave organizations and start their own ventures. We aim to investigate the influence of following three effects on entrepreneurial spawning: (1) incumbent firms’ characteristics; (2) entrepreneurs’ prior work experience gained from incumbent firms; and (3) environment characteristics that incumbent firms reside in. In addition, small firms and large firms may differentially influence entrepreneurial spawning. We thus investigate how firm size moderates these relationships respectively.