Session 104

Employees Mobility and Corporate Entrepreneurship

Track K

Date: Wednesday, October 14, 2009


Time: 11:30 – 12:45


Room: Meeting Room5

Session Chair:
Theodore Khoury, Portland State University

Title: Employee Mobility, Employee Entrepreneurship and the Effects on Parent Firm Performance


  • Benjamin Campbell, Ohio State University
  • Martin Ganco, University of Wisconsin-Madison
  • April Franco, University of Toronto
  • Rajshree Agarwal, University of Maryland

Abstract: Employee entrepreneurship – startup founding by individuals previously employed with industry incumbents – has been identified as an important driver of intra-industry dynamics. Employee mobility – movements of individuals across existing firms – was found to be a strong conduit for knowledge transfer. However, less is known about the impact of these events on the parent firm and the nature of transferred knowledge. Using the data from the U.S. Census we find that higher quality individuals self-select into employee entrepreneurship but that the negative effect on parent firm is not attributable only to selection. Our findings also suggest that both the transfer of opportunities and the transfer of routines play an important role in determining the impact of exiting employees on parent firm performance.

Title: Linking Corporate Entrepreneurship to Performance: The Pivotal Role of Strategic Alliance Portfolio Resources


  • Zeki Simsek, Clemson University
  • Smriti Prabhakar, University of Connecticut

Abstract: Are firms pursuing corporate entrepreneurship (CE), defined as the sum of a company’s innovation, renewal, and venturing efforts (Zahra, 1996), more likely to attain greater performance levels than firms pursuing less CE? We argue that a firm’s alliances are potent conduits by which the firm accesses the needed resources for successfully pursuing CE. Thereby acting as resource “gap-fillers,” they condition the shaping potential of CE on performance. In particular, we specify four alliance portfolio resource conditions that will determine the shaping potential of CE on performance; complementarity, specificity, tacitness, and first mover. Our preliminary analyses, using multi-source firm-level data, show support for the pivotal role of alliance portfolio resource conditions specified in our model.

Title: The Influence of Technological Interdependence on Employee Entrepreneurship and Mobility: Evidence from the Semiconductor Industry


  • Martin Ganco, University of Wisconsin-Madison

Abstract: The intra-industry activities of employees post-exit from incumbent firms have been identified as an important determinant of industry dynamics and structure. The post-exit founding of startups – employee entrepreneurship – is widely heralded as an important driver of innovation, firm creation and growth. Similarly, post-exit mobility to rival firms has been recognized as a crucial channel for knowledge spillovers. Far less is known, however, about how technology influences this flow of talent. This study investigates one attribute of technology – technological interdependence. Drawing on a unique database of intra-industry inventor entrepreneurship and mobility events in the U.S. semiconductor industry, I find that the propensity to engage in employee entrepreneurship increases, but to join a rival firm, decreases with the technological interdependence of inventor’s prior patents.

Title: Why do Employees Leave Their Job for Self-Employment?: The Impact of Entrepreneurial Working Conditions


  • Arndt Werner, IfM Bonn
  • Petra Moog, University of Siegen

Abstract: Based on the finding that founders of new firms tend to work as employees of small rather than large firms, we test how different working conditions might affect this decision. We find that working conditions like the ability to independently decide how to structure and complete work tasks, varied work hours according to the work load and participation in important company decisions are significantly related to firm size when predicting the probability and decision of leaving paid-employment for self-employment. We find that when large firms offer entrepreneurial working conditions qualified employees are motivated to stay whereas in SMEs the best employees leave. This is a strategic dilemma for SMEs to be solved and a strategic advantage for large firms to hold entrepreneurial oriented employees.

All Sessions in Track K...

Sun: 10:00 – 11:30
Session 254: Developing a Game Plan for Strategy Research on Social Entrepreneurship
Sun: 13:00 – 14:30
Session 253: Knowledge Spillovers and Strategic Entrepreneurship
Sun: 15:00 – 16:30
Session 252: Key Issues and Emerging Questions in Entrepreneurial Strategy Research
Sun: 16:30 – 17:30
Session 315: Entrepreneurship & Strategy, IG Meeting
Mon: 12:45 – 14:00
Session 102: Networks, Alliances and Entrepreneurship
Session 244: Entrepreneurship in Emerging and Transition Economies
Mon: 15:45 – 17:00
Session 100: Founders, Founding Conditions and Human Capital
Session 249: Examining Entrepreneurial Phenomena at Multiple Levels
Mon: 17:15 – 18:30
Session 101: Opportunities & Founders
Session 248: Issues in Governance and Technology Commercialization in New Ventures
Tue: 10:00 – 11:15
Session 107: Current Thoughts on Entrepreneurship in Emerging and Transition Economies
Session 111: Opportunties, Uncertainty & Innovation in Entrepreneurial Ventures
Tue: 11:30 – 12:45
Session 106: Current Thoughts on Signaling and Venture Capital
Tue: 14:30 – 15:45
Session 108: The Impact of Institutions, Regions and Countries on Entrepreneurial Ventures
Wed: 10:00 – 11:15
Session 105: Current Research on Serial Entrepreneurs and Market Makers
Session 112: The Impacts of Diversification on Entrepreneurial Ventures
Wed: 11:30 – 12:45
Session 104: Employees Mobility and Corporate Entrepreneurship
Session 109: Current Research on Uncertainty and Entrepreneurship

Strategic Management Society

Washington DC