Series of Spinoff Emergences Caused by Exogenous Pressures and their Network Formation

A Case of Spinoffs from Morioka Factory of Alps Electronics

Abstract

In this study, we investigated the process of spinoff network formation and specified the conditions that facilitated the process. We focused on the concurrent emergence of multiple spinoffs resulting from exogenous pressure and investigated their collaboration across two generations. The spinoffs from the Morioka factory of Alps Electric Co. Ltd. were selected as the research target. Our findings revealed that the factory created innovative products, had a unique culture, and a history of creating spinoffs. Since 1992, the first-generation of spinoffs had started emerging as the result of corporate restructuring and engaged in contract prototype manufacturing, designing, and processing. Following 2002, the second-generation of spinoffs appeared after the sudden shutdown of the Morioka factory. They engaged in new product development. In both generations, the spinoffs from the Morioka factory successfully formed a collaboration network to support each other in a variety of ways. These networks were based on mutual confidence in their abilities and skills. Support networks extended to the Morioka factory alumni. Although employees left Alps Electric to work at other companies, some of them gave preferential treatment to the spinoffs. We also found that regional players, such as former customers, suppliers, and partner companies of the Morioka factory, the local government, and Iwate University played important roles in the survival of the spinoffs. Without these supports, the survival and network formations of the spinoffs would have been more difficult.