Digit-oriented spin-offs are crucial drivers due to their high entrepreneurial potential in the digital transformation market. Most of these spin-offs either embed within their parent companies’ network or develop independent networks to facilitate entrepreneurial growth. Existing literature predominantly focuses on how specific factors empower the growth of these spin-offs, often neglecting an integrated exploration of the connections between these factors. This study aims to examine multiple pathways to high entrepreneurial performance in digit-oriented spin-offs.
Grounded in optimal distinctiveness theory, this study analyzes secondary data from 258 Chinese digit-oriented spin-offs. Fuzzy-set qualitative comparative analysis (fsQCA) is used to explore configurations by which network environment, strategic logic and organizational capabilities contribute to high entrepreneurial performance.
Neither the network environment, strategic logic nor organizational capabilities alone are necessary for high entrepreneurial performance. There are six configurations of high performance, which can be categorized into three driving pathways: parent oriented, independent oriented and ambidextrous oriented. Four configurations leading to non-high performance are summarized into two driving pathways: blind exploration and blind exploitation.
Drawing on the existing achievements in the field of spin-off entrepreneurship, a holistic analytical framework for digit-oriented spin-offs to achieve high entrepreneurial performance is proposed. Then, in response to calls from complex adaptive systems theory, this study integrates a configurational perspective and fsQCA methodology to investigate spin-offs. Third, the study broadens the theoretical boundaries of optimal distinctiveness theory in the context of digit-oriented spin-offs’ entrepreneurship.
