Speciation through entrepreneurial spin-off: the Acorn-ARM story
Article Type: Abstracts From: Strategic Direction, Volume 24, Issue 11
Garnsey E., Lorenzoni G., Ferriani S. Research Policy, March 2008, Vol. 37 No. 2
Purpose – To explore techno-organizational speciation (T-OS) through entrepreneurial spin-off. Design/methodology/approach – Draws parallels from ecological speciation to propose the T-OS concept, whereby new technology emerges with organizational changes supporting successful exploitation. Comments on related parent-progeny speciation studies. Illustrtaes T-OS by a spin-off case – Advanced RISC Machines Ltd (ARM) from Acorn Computers, England. Employs information from real-time study and interviews dating from the 1980s. Findings – Recounts 1978-1990 growth of Acorn, the BBC Micro being a 1984 landmark, which spurred development of a new RISC microprocessor. Reports,however, poor sales led to Olivetti becoming a major Acorn shareholder, and raised microprocessor spin-off prospects. Stataes it only occurred when Apple Computers did not want to buy directly from Olivetti, so ARM was created in a joint venture. Describes ARM’s post-1990 spin-off technology- and partnering-focus strategy, this leading to a Texas Instruments/Nokia/ARM venture providing “Thumb” architectural extension. Asserts this enabled ARM to offer customized chips and gain 77 percent of the RISC market in 2001, thus becoming a global standard, while Acorn disbanded in 1997. Justifies T-OS through this i.e. major domain application change, new platform, parent demise,and new business model launch. Details contributory speciation factors concerning incompatibility, new environments (niche markets) and Acorn-ARM lineage continuity until deliberate breakaway by ARM. Research limitations/implications – States this illustrates how speciation involves continuity and discontinuity. Originality/value – Uses successful spin-off of Advanced RISC Machines Ltd (ARM) from Acorn Computers (which disbanded), to introduce a new change paradigm – techno-organizational speciation. ISSN:0048-7333 Reference: 37AM098
Keywords: Acorn computers, Advanced RISC machines, Joint ventures, Microprocessors, Semiconductors, Start-ups
