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.
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 language | English |
|---|---|
| Title of host publication | Proceedings of the 54rd Annual Meeting of the Academy of International Business |
| Editors | Susan Feinberg, Tunga Kiyak |
| Place of Publication | East Lansing, MI |
| Publisher | Academy of International Business |
| Publication date | 2012 |
| Pages | 63 |
| Publication status | Published - 2012 |
| Event | AIB 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 2012 → 3 Jul 2012 Conference number: 54 http://aib.msu.edu/events/2012/ |
Conference
| Conference | AIB 2012 Annual Meeting |
|---|---|
| Number | 54 |
| Location | George Washington University and University of Maryland |
| Country/Territory | United States |
| City | Washington |
| Period | 30/06/2012 → 03/07/2012 |
| Internet address |
| Series | Academy of International Business. Annual Meeting. Proceedings |
|---|---|
| Volume | 54 |
| ISSN | 2078-4430 |