An Analysis Framework Of Corporate Spin-Off Creation Focused On Parent Company: A Case Study Of A Traditional Industrial Company From The State Of Rio Grande Do Sul, South Of Brazil

Abstract

Emerging countries have been focusing their development strategy on entrepreneurship along with innovation and technology diffusion. In the context of a traditional industry located in the South of Brazil, this study has analyzed the factors that led a company to invest in creating a corporate spin-off. An analysis framework was developed and turned out the following factor of analysis: (i) Characterization (parent company and spin-off); (ii) Relevant Factors of Spin-off Decision; and (iii) Process (external and internal environment). The framework was applied to a case study and the results show that spin-off creation is an alternative to explore stagnated resources in a parent company upon a market opportunity. Separating the spin-off and integrating it into an innovation environment is a strategy to mitigate the market barriers; while factors such as public policies have limited impact on decision-making, they affect the process of the spin-off creation. The study points out that the creation of a spin-off occurs in a context guided primarily by the opportunity, due to strategic orientation of the parent company.

Keywords: spin off, entrepreneurship, innovation, traditional economy, tech based.