Strategic Spin-Offs in Small and Medium Size Entreprises

Eric Michael Laviolette
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Eric Michael Laviolette: Euristik - Equipe de Recherche en management stratégique - UJML - Université Jean Moulin - Lyon 3 - Université de Lyon - MAGELLAN - Laboratoire de Recherche Magellan - UJML - Université Jean Moulin - Lyon 3 - Université de Lyon - Institut d'Administration des Entreprises (IAE) - Lyon

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Abstract: Our research aim at exploring the strategic implications of spin-off processes for small and medium size enterprises (SMEs). Building on three in-depth case analysis, our research shows how owner-managers of SMEs have been able to turn what was initially a disruptive and threatening event into a value creating process, enhancing the competitive advantage and performance potential of their company. For instance, the first case shows how a spin-off enabled an owner-manager to seize new opportunities in an emerging market by leveraging his relation with creative employees preparing their departure from the firm. The second case depicts how it helped secure the outsourcing of peripheral but critical activities of another SMEs. The third case illustrates how a spin-off simultaneously favoured employee's mobility and helped secure access to critical human resources. On the whole, our research tend to confirm that, in the context of SME, spin-offs can constitute powerful strategic tools. However, for this to happen, the owner-managers have to display certain attitudes and competencies such as - a) encouraging and integrating individual initiatives, b) strong personal involvement in the spin-off process and c) in depth knowledge of the entrepreneur and the entrepreneurial process. These behaviors are enabled by SME's organizational characteristics such as, simple structure and processes, actors' proximity and centralized leadership

Date: 2005
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Published in 50th International Council for Small Business (ICSB) Conference, 2005, Washington, United States

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00371251

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