Small Fast Growing Firms Coming Out of Large Organizations : A Spin-off Situation Classification

• Small fast growing high technology firms in Sweden often origin as spin-offs from large organizations. This paper presents a theoretical discussion about different types of spin-offs, what kind of spin-offs to expect from large organizations ("womb-firms" ) in different phases of evolution. The paper will also discuss what kind of relationship, between the "womb-firm" and the spin-off firm that is to be expected according to the actual type of spin-off and the "womb-firm" situation. The theoretical background is a model of growth in living systems. The paper examines ten different situations of the womb-firm. Every such situation is assumed to generate one or more of four different basic types of spin-offs and every type of spin-off is assumed to lead to the womb-firm adapting to the spin-off firm in one of five different ways. The conclusions are that in future research on spin-offs it will be possible to limit the view to four different womb-firm situations, namely: a) The business activities of the womb-firm are in growth b) The business activities of the womb-firm are mature or new patterns are looked for c) The business activities of the womb-firm are in a situation of degeneration or catastrophe d) The business activities of the womb-firm are oriented towards a new venture

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