Spin-in and spin-out for growth – On the acquisition and divestiture of high-tech firms
Öberg, C. (2021). Spin-in and spin-out for growth – On the acquisition and divestiture of high-tech firms. Journal of Organizational Change Management, 34(3).
This paper describes and discusses company spin-ins and spin-outs as a means to understand company growth in a dynamic context. The following question is asked: How can growth be understood in spin-ins and spin-outs of innovative firms? The paper suggests return on capabilities as a measure to understand growth in an open innovation context.
The empirical part of the paper consists of a single case study. Data was captured through interviews and secondary data sources.
The paper points to that resources alone do not explain strategic decisions by a company and how spin-ins and spin-outs result from the need for capabilities, changes in business foci and temporary solutions to deal with overcapacities or lack of alternatives.
The paper contributes to research by discussing contemporary issues in strategy and innovation and relating them to the resource-based view and the growth of the firm. Spin-outs, and acquisitions and divestitures as interlinked events have rarely been focused on in the literature, while they remain frequent phenomena in practice.