Business Groups, Internationalization and Institutional Change: Evidence from India

Vikas Kumar, Tamara Stucchi, Sumit K. Kundu

    Publikation: Bidrag til bog/antologi/rapportKonferenceabstrakt i proceedingsForskningpeer review


    Business group affiliation is an important determinant of firm economic performance in the context of emerging economies. However, relationship between business group affiliation and internationalization of firms remains
    unclear. In the context of internationalizing emerging economy firms, many of which are affiliates of larger business groups, the question of whether such an affiliation serves as a boon or bane in firm internationalization is one of critical importance. We argue that institutional changes play an important role in shaping the relationship between business group affiliation and the degree of internationalization. Our results, based on empirical analysis of Indian firm data, indicate a negative relationship between business group affiliation and
    the degree of internationalization during the initial period of major institutional change. In the latter period with greater institutional stability, the negative relationship fades away. Our findings imply that advantages of business group affiliation are location bound and do not easily confer to international operations. Also, business group firms are slower than unaffiliated firms to adapt to a new institutional environment in times of significant institutional changes.
    TitelProceedings of the 54rd Annual Meeting of the Academy of International Business
    RedaktørerSusan Feinberg, Tunga Kiyak
    UdgivelsesstedEast Lansing, MI
    ForlagAcademy of International Business
    StatusUdgivet - 2012
    BegivenhedAIB 2012 Annual Meeting: Rethinking the Roles of Business, Government and NGOs in the Global Economy - George Washington University and University of Maryland, Washington, USA
    Varighed: 30 jun. 20123 jul. 2012
    Konferencens nummer: 54


    KonferenceAIB 2012 Annual Meeting
    LokationGeorge Washington University and University of Maryland
    NavnAcademy of International Business. Annual Meeting. Proceedings