University spin-offs following acquisitions: the expanding resource-capability chasm

Purpose University spin-offs (USOs) play a crucial role in commercializing research findings. However, their commercialization journey often does not involve going it alone; instead, USOs commercialize through acquisitions. This paper explores the impact of acquisitions on USOs. It examines how these transactions influence their resources and capabilities, resulting from stakeholders’ attitudinal expectations toward USOs. Design/methodology/approach The paper theorizes that acquisition creates a resource-capability chasm in USOs, driven by the expectations of ecosystem stakeholders. To illustrate this concept, it presents three interview-based case studies on international acquisitions of USOs specializing in artificial intelligence solutions. The pre- and post-acquisition resources and capabilities of the USOs are analyzed and compared across the cases. Findings The paper demonstrates how the resource-capability chasm spans multiple categories – managerial, invention, ecosystem and financial – highlighting the interdependencies between USOs and their ecosystems, both academic and business, in addressing and bridging these gaps. Originality/value The literature on the acquisitions of USOs is surprisingly limited. This paper offers a unique perspective on the acquisition of USOs by examining how these firms’ resources and capabilities are impacted by the acquisition and how the surrounding ecosystem responds. It contributes to existing research by introducing and theorizing the concept of a resource-capability chasm in USOs, thereby deepening the understanding of the acquisition process and providing insights into strategies for effectively managing such acquisitions.