Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/57551
Authors: 
Cordes, Christian
Richerson, Peter J.
Schwesinger, Georg
Year of Publication: 
2011
Series/Report no.: 
Papers on economics and evolution 1111
Abstract: 
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.
Subjects: 
Spinoff Formation
Critical Firm Size
Firm Performance
Industry Evolution
Corporate Culture
JEL: 
D21
L25
L26
M13
M14
C61
Document Type: 
Working Paper

Files in This Item:
File
Size
253.64 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.