What can we learn about the success factors of corporate spin-offs from literature? How can the existing knowledge be applied to a planned spin-off?

Abstract

This study examines spin-offs from the perspective of the literature and critically incorporates the resulting insights into the debate about a possible spin-off of a real company. The basis for this discussion includes both relevant academic literature and ananalysis of the current and historical situation of the company, as well as interviews with executives and employees. In addition, the potential of the possible spin-off has been described as thoroughly as possible, drawing on technological aspects and scientific sources. Given the large amount of literature about spin-offs, the literature review focused primarily on various spin-off definitions and described spin-off success factors. For the interviews, care was taken to include opinions from different areas of the company and to contrast the management's perspective with the assessments of the unit leaders. Considering all the facts, it emerged that the company is currently not ready to establish a spin-off. Although the technology for the potential spin-off appears promising and the company urgently needs new impetus to secure its site, both management and unit leaders concluded that the organizational prerequisites for such a step are lacking. In particular, the unit leaders fear that a spin-off would not receive enough independence and autonomy due to the existing leadership structure, which is essential for sustainable success.