Spinoffs versus non-spinoff entrepreneurs

Purpose The purpose of this study is to explore the role of spinoff entrepreneurs in the post-bubble Japan and ultimately to facilitate policy reforms that benefit entrepreneurs most in need of support. Design/methodology/approach This study adopts a survey of Japanese entrepreneurs from 2003 to 2013. Exploiting the survey questions, the authors separate spinoff startups from the non-spinoff startups. Using this data set, this study first performs a logistic regression, followed by a chi-squared independence test between spinoff startups and firm performance. Findings This study finds that while both human and social capital predict the probability of a firm’s positive performance, industry experience was the strongest predictor for the probability of performance. Originality/value As Garvin (1983) stated, most research on spinoffs are limited to both industry type and location. The theoretical contribution of this study is to broaden the applicability of current entrepreneurship theories by considering industries beyond technological startups. The practical value of this study is to begin evaluating policies and their interaction effect with cultural context.