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The peripheral halo effect: Do academic spinoffs influence universities' research income?

Pitsakis, K., Souitaris, V. & Nicolaou, N. (2015). The peripheral halo effect: Do academic spinoffs influence universities' research income?. Journal of Management Studies, 52(3), pp. 321-353. doi: 10.1111/joms.12119


Extant literature has drawn attention to the 'halo effect' of the good reputation of a core organizational activity on the outcome of a peripheral activity. We contribute to the literature on organizational reputation by illustrating a halo effect in the opposite direction - from the periphery to the core. We show that developing a reputation for a peripheral activity (in our context, universities' social impact via spinoffs) may have positive spillovers for core organizational activities (in our context, university research), a phenomenon we term the 'peripheral halo effect'. We also show that this effect is more prominent for high-status than for low-status organizations. Our research also contributes to the academic-entrepreneurship literature by revealing that spinoff portfolios can generate income for universities not only directly via equity positions but also indirectly via reputational benefits.

Publication Type: Article
Additional Information: This is the peer reviewed version of the following article: Pitsakis, K., Souitaris, V. and Nicolaou, N. (2015), The Peripheral Halo Effect: Do Academic Spinoffs Influence Universities' Research Income?. Journal of Management Studies, 52: 321–353. doi: 10.1111/joms.12119, which is to be published in final form at This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.
Publisher Keywords: organizational reputation; halo effect; signaling theory; status; spinoffs; academic entrepreneurship; university funding
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Departments: Bayes Business School > Management
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