ICC Advance Access originally published online on July 23, 2007
Industrial and Corporate Change 2007 16(4):569-608; doi:10.1093/icc/dtm018
Knowledge conversion capability and the performance of corporate and university spin-offs
Correspondence: Shaker A. Zahra, Gary Holmes Center for Entrepreneurial Studies and Department of Strategic Management and Organization, Carlson School of Management, University of Minnesota, 321 19th Ave. South Minneapolis, MN 55455, USA. e-mail: szahra{at}csom.umn.edu
Correspondence: Els Van de Velde, Faculty of Economics and Business Administration, Ghent University, Hoveniersberg, 24, 9000 Gent, Belgium. e-mail: els.vandevelde{at}vlerick.be
Correspondence: Bárbara Larrañeta, Department of Business Administration, School of Management, Pablo de Olavide University Ctra. Utrera Km.1-41013, Seville, Spain. e-mail: blargom{at}upo.es
Corporate and university spin-offs are often created to commercialize new technologies. Yet, it is not clear how these spin-offs transform their inventions into new products, goods and services that create value. In this article, we use the knowledge-based theory to argue that this transformation requires a "knowledge conversion capability" (KCC) that has three components: conceptualization and visioning of applications of that knowledge; configuration and design of potential products and other applications; and the embodiment and integration of knowledge into products. Using data from 91 corporate and 78 university spin-offs, we find that these two sets of firms differ in their emphasis on the three KCC components, benefit differentially from these three components in terms of their performance, and vary significantly in their performance.
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