Business Groups, Internationalization and Institutional Change: Evidence from India

Vikas Kumar, Tamara Stucchi, Sumit K. Kundu

    Research output: Chapter in Book/Report/Conference proceedingConference abstract in proceedingsResearchpeer-review

    Abstract

    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.
    Original languageEnglish
    Title of host publicationProceedings of the 54rd Annual Meeting of the Academy of International Business
    EditorsSusan Feinberg, Tunga Kiyak
    Place of PublicationEast Lansing, MI
    PublisherAcademy of International Business
    Publication date2012
    Pages63
    Publication statusPublished - 2012
    EventAIB 2012 Annual Meeting: Rethinking the Roles of Business, Government and NGOs in the Global Economy - George Washington University and University of Maryland, Washington, United States
    Duration: 30 Jun 20123 Jul 2012
    Conference number: 54
    http://aib.msu.edu/events/2012/

    Conference

    ConferenceAIB 2012 Annual Meeting
    Number54
    LocationGeorge Washington University and University of Maryland
    CountryUnited States
    CityWashington
    Period30/06/201203/07/2012
    Internet address
    SeriesAcademy of International Business. Annual Meeting. Proceedings
    Volume54
    ISSN2078-4430

    Cite this

    Kumar, V., Stucchi, T., & Kundu, S. K. (2012). Business Groups, Internationalization and Institutional Change: Evidence from India. In S. Feinberg, & T. Kiyak (Eds.), Proceedings of the 54rd Annual Meeting of the Academy of International Business (pp. 63). Academy of International Business. Academy of International Business. Annual Meeting. Proceedings, Vol.. 54 http://aib.msu.edu/events/2012/AIB2012_ConferenceProceedings.pdf