Not all apples fall close to the tree: survival of pushed spin-offs from Danish shipyards

This exploratory study investigates the survival and exit of pushed spin-offs created during industrial decline. Drawing on the resource-based view, we examine how configurations of VRIO resources and diversification relative to the parent firm’s main activity shape the survival of incumbent-created and employee-created spin-offs. Using unique, hand-collected, multi-source data on pushed spin-offs from the Danish shipbuilding industry from 1980 to 2015, we analyse survival paths through crisp-set qualitative comparative analysis (csQCA). We find that incumbent-created spin-offs survive when they diversify away from the parent’s main activity, regardless of whether they possess VRIO resources. In contrast, employee-created spin-offs survive when they combine diversification with VRIO resources. We conclude that diversification is a central driver of pushed spin-offs’ survival, but that its effect depends on the founding actors and inherited resources. The study shows that pushed spin-offs are heterogeneous and survive through different configurations of founding actors, inherited resources, and diversification strategies.