Early stages of a corporate spinnoff are important for dynamic capabilities development

Organizational capability to change and adapt is focal in fostering competitive advantage. In the case of a corporate spinnoff the initial incubation period and the processes after becoming an independent company are critical for explaining later development in higher order capabilities. Sensing seizing and transforming that are macro-foundations for dynamic capabilities do not happen automatically, but they are a function of the micro-foundations (processes. paths & positions). In addition, they require constant training in the same way as building a muscle. Tacit and explicit transfer of both micro- and macro-foundations from the parent organization are essential for the development of dynamic capabilities.

Research article: Why history matters: Micro-and macro-foundations in a corporate de alio spinoff
Authors: Alexandra Kriz (University of Queensland), Taina Eriksson & Mari Ketolainen