Abstract.
We study the continuing relationship between entrepreneurial spinouts and their parents, finding that many spinouts end up being acquired by the same incumbent firms in an industry that spawn spinouts. We study this 'release and catch' phenomenon using an abductive approach. In the context of the electronic design automation (EDA) software industry, we propose various explanations and assess their consistency with quantitative firm data and qualitative interview insights. Our findings suggest that the most likely explanation is "technology trial," wherein spinouts developed new technologies that were later integrated into larger firms via acquisition. This research offers broader implications for the study of technology strategy and entrepreneurial dynamics, suggesting "release and catch" as an alternative hybrid governance form: incumbents externalize risky component innovations through employee spinouts and acquisitions.
BIO
Aseem joined the Carlson School in 2009, having completed his PhD in Management from the Wharton School, University of Pennsylvania. Aseem's research focuses on the relationship between firm scope and capabilities, examining how new capabilities and technologies are best governed and organized, and how the organizational boundary choices firms make impact their subsequent innovation. More recently, Aseem has also been exploring the social and political strategies firms adopt to influence their business environment, focusing specifically on the consequences of such strategies for social welfare. Aseem's research has been published or is forthcoming in the Academy of Management Journal, Academy of Management Review, Management Science, Organization Science, Strategy Science, and the Strategic Management Journal. Aseem serves as an Associate Editor at the Academy of Management Review, having previously served in that capacity at the Strategic Management Journal, and sits on the editorial boards of Administrative Science Quarterly, Organization Science, and Strategy Science. He also currently serves as Director-at-Large for the Strategic Management Society and sits on board of the Consortium for Competitiveness & Cooperation (CCC). Aseem's research has been recognized with numerous awards, including the Sumantra Ghoshal Research and Practice award from the Academy of Management's BPS Division, as well as multiple honourable mentions from the Strategic Management Society. Prior to joining academia, Aseem worked as a consultant with McKinsey and Company's New Delhi office.
More details about Aseem's work - https://carlsonschool.umn.edu/faculty/aseem-kaul.