business group internationalization
157132537
Business group internationalization: choosing a host country according to institutional distance
Purpose This research analyzes to what extent committing resources to the internationalization of family business groups is related to the institutional distance of the host country. Design/methodology/approach We used OLS panel data with fixed effects. Findings We identified that family business groups decide to internationalize themselves committing fewer resources to countries that present a positive institutional distance, and that are more institutionally developed than the country of origin. On the other hand, when family business groups choose to expand abroad committing more resources, they tend to invest in countries with a negative institutional distance, and that are less institutionally developed than the country of origin. Originality/value Our main contribution to existing theory on internationalization of family business groups is to test the relationship between the level of resource commitment by family business groups in their international expansion and the institutional distance between the country of origin and the host country.
Marina Amado Bahia Gama Jeferson Lana Cyntia Villasboas Calixto Rodrigo Bandeira-de-Mello
158769355
Business group reputation and affiliates' internationalization strategies
Abstract The literature on business groups (BGs) has identified reputation as a critical factor in their success and survival. However, most studies have assumed that BGs are well known and well regarded an assumption that may not be tenable in the context of international expansion. We use signaling theory to explore the causes of an unacknowledged source of BG heterogeneity variance in their reputation prominence (whether they are well known or not) and reputation quality (whether they are regarded favorably or unfavorably) and seek to understand how this heterogeneity may result in differences in BG affiliates' geographic scope and location choices as they internationalize.
Debmalya Mukherjee Erin E Makarius Charles E Stevens
213564816
Impact of Business Group Affiliation on SME internationalization: A Blessing or Curse?
Jonas Stromfeldt Eduardsen Bozidar Vlacic Miguel Loureiro Svetla Trifonova Marinova
226794510
Does Efficient Social Network Structure Benefit the Performance of Business Groups and Core Firms? The Underlying Mediation Mechanism for Small World Network Structure and Internationalization in Cross Level Business Group Network
Xiao Shi Jie Wang Luo Jin Ji Nian Lai Zai Guan Li Ling Yu Yi Shou Dao Zhu Duo Xue Zhe De Guan Zhu ,Ben Yan Jiu Zhu Yao Tan Tao Zai Ji Tuan Qi Ye Suo Xing Cheng De Xiao Shi Jie Wang Luo Jie Gou Yu Qi Ji Xiao Zhi Xiang Guan Xing Gai Ji Xiao Bao Han Cai Wu Mian De Ying Ye Ji Xiao Yi Ji Guo Ji Hua Ji Xiao Ben Yan Jiu Cai Yong Guo Qu Jiao Shao Yong Lai Tan Tao Ji Tuan Qi Ye De Wang Luo Guan Dian ,Suo Tan Tao Zhong Dian Wei Xiao Shi Jie Wang Luo Jie Gou Dui Zheng Ti Ji Tuan Qi Ye Ji Qi Suo Shu He Xin Mu Gong Si De Cai Wu Ji Xiao Suo Zao Cheng Zhi Ying Xiang ;Chu Ci Zhi Wai ,Ji Tuan Qi Ye De Guo Ji Hua Ji Xiao ,Zai Guo Qu Ji Tuan Qi Ye Yan Jiu Ling Yu Ye Jiao Shao Bei Chu Ji ,Ben Yan Jiu Ye Chang Shi Tan Tao Xiao Shi Jie Wang Luo Jie Gou Dui Ji Tuan Qi Ye De Guo Ji Hua Ji Xiao Ying Xiang ,Yi Ji Guo Ji Hua Ji Xiao Suo Ban Yan De Zhong Jie Jiao Se Ben Yan Jiu Tou Guo Ji Tuan Ceng Ci Yi Ji Kua Ceng Ci (Ji Tuan Dui Gong Si Ceng Ci )Zhi Yan Jiu Qing Jing ,Yan Shen Guo Qu Ji Tuan Qi Ye Zhe Yi Mo De Wen Xian Yan Jiu Zhen Dui Wei Qi 5Nian De Ji Tuan Qi Ye Zi Liao Zhi Shi Zheng Jie Guo Xian Shi :Ji Tuan Qi Ye De Xiao Shi Jie Wang Luo Jie Gou Yu Qi Cai Wu Ji Xiao Cheng UXing De Fei Xian Xing Xiang Guan ;Xiao Shi Jie Wang Luo Jie Gou Yu Qi Suo Li Shu De He Xin Mu Gong Si Zhi Cai Wu Ji Xiao Que Cheng Dao UXing De Fei Xian Xing Xiang Guan Zhi De Yi Ti De Shi ,Xiao Shi Jie Wang Luo Jie Gou Yu Ji Tuan De Guo Ji Hua Ji Xiao Bing Wei Cheng Xian Xiang Guan Xing ,Ji Tuan De Guo Ji Hua Ji Xiao Ye Wei Zai Xiao Shi Jie Wang Luo Ji Qi Cai Wu Ji Xiao Zhi Xiang Guan Xing Dai Lai Zhong Jie Xiao Guo
Ying-Yu Chen
158751077
Diffusion of internationalization in business group networks: evidence from India
Purpose The purpose of this paper is to suggest that business group (BG) networks act as conduits for diffusion of information and resources pertaining to internationalization. It considers three types of BG networks arising from three different types of ties director interlock, direct equity, and indirect equity. In particular, it examines the effects of cohesiveness of these BG networks on the diffusion of internationalization within a BG. Design/methodology/approach Drawing on social network perspective, it is hypothesized that, for each type of network, cohesiveness enhances within BG similarity of the extent of internationalization. An empirical investigation is conducted on a sample of 55 Indian BGs for the period 2009 2013. Findings Results support all the three hypotheses, suggesting that higher level of cohesiveness leads to higher level of within BG similarity of the extent of internationalization, for all three network types. Originality/value Findings of this study contribute to the BG literature by examining the effects of BG network cohesiveness on the diffusion of internationalization within a BG, for three types of BG networks.
Dhirendra Mani Shukla Mohammad Ali Akbar
158724259
Performance of business group affiliated firms in emerging markets: Causal mediation analysis of internationalization and investment into innovation strategy
Purpose The purpose of this paper is to explore the existing mechanism through which business group affiliated firms in emerging markets (EMs) continue to generate superior performance. Design/methodology/approach The authors build our argument on the basis of how business group affiliation in EM facilitates internationalization and investment into innovation in affiliated firms compared to un affiliated firm, resulting in higher firm performance. The authors use advance statistical modeling causal mediation analysis to separate direct effect and indirect effect of business group affiliation in EM on performance through internationalization and investment into innovation of business group affiliated firms as mediating variables. Findings Based on 122,479 observations (firm year) from 17,235 Indian business group affiliated and un affiliated firms, the findings help to identify that internationalization and investment into innovation of business group affiliated firms do have a mediating role in affiliation performance relationship for EM business groups. Originality/value This study unravels the existing causal chain between business group affiliation in EMs and subsequent performance of affiliated firms. The authors complement institutional argument for superior performance of business group affiliation and focus on the performance implication of mediating strategic decisions in affiliated firms.
Anish Purkayastha
157836436
Firm internationalization, business group diversification and firm performance: The case of Latin American firms
We examine the influence of multinationality and business group diversification on firm performance. Further, we examine how their interaction varies between service and manufacturing firms. We assess these relations in three Latin American countries using a sample of 103 firms over the period from 2000 to 2007. We found that there is a limit to the positive effects of business group diversification and that business group diversification effectively moderates the multinationality performance (M P) relationship. Our results also suggest that diversified business groups have a stronger positive influence on the M P relationship for service firms compared to manufacturing firms.
Armando Juan Borda Jose Mauricio Galli Geleilate William Newburry Sumit Kundu
168745135
Does Internationalization of Business Group Affiliated Firms Depend on Their Performance?
Previous research on international operations of the business groups (BG) have predominantly looked into the effects of internationalization on various frontiers of business. Pertaining to emerging economies, the implicit assumption is internationalization helps to avert the uncertainties of market imperfections. We raise doubt on the implicit assumption that just being affiliated to a parent firm will provide the resources for internationalization. Therefore, we have taken up this study, to understand the dynamics of emerging economy multinationals, which are characterized by their asset seeking nature to internationalize. We have tested our hypotheses on listed Indian firms. We have selected top 499 BSE listed companies, which had reported the highest amount of sales in 2010 as the base, and we generated a balanced panel dataset of 2994 firm years using the observations for the period 2010 2015. We used General Linear Square (GLS) fixed effects model to examine the impact of performance of BG affiliated firms on their degree of internationalization. We expected a positive relationship between firm performance and degree of internationalization, which was further anticipated to be positively moderated by business group affiliation of firms. Does Internationalization of Business GroupAffiliated Firms Depend on Their Performance?
Subhasree Mukherjee Kavitha Pradeep
157105418
Business group heterogeneity and the internationalization performance relationship: Evidence from Indian business groups
Business groups, the dominant organizational form in many Asian markets, have expanded their operations into international markets. We combine the resources based view with the institutional perspective to highlight the costs and benefits of business groups' internationalization, rather than business groups' affiliated firms' internationalization, and consider how ownership heterogeneity among business groups influences the internationalization performance relationship. Three ownership types family, domestic financial institution, and foreign corporate serve as distinguishing characteristics of business groups and potential moderators of this relationship. In a sample of 185 Indian business groups examined over more than a decade (2000 2010) we find that these three ownership types have a differential impact on the internationalization performance relationship, depending on the level of internationalization of the business group. Specifically, we find that at lower levels of internationalization, family and foreign corporate ownership has a positive moderating effect whereas domestic financial institutional ownership has a negative moderating effect. Conversely, at higher levels of internationalization, family and foreign corporate ownership has a negative moderating effect, while domestic financial institutional ownership positively moderates the internationalization performance relationship.
Saptarshi Purkayastha Vikas Kumar Jane W Lu
157828271
Effect of Business Group Affiliation on Firm Internationalization: The Case of India Under Reforms
ABSTRACT The authors investigate how diversified business groups influence the structural reform firm strategy relations given its effect on strategic choice and its implementation in a large emerging economy: India. By integrating business group, industrial organization, and international business literature, the authors predict considerable differences in the exporting behavior of business group affiliated firms on the basis of their market competitiveness and governance dynamics. The authors test their predictions empirically with longitudinal data of 6,119 Indian firms over a 21 year period starting from 1991 1992 to 2011 2012 and find support for most of the hypotheses. These findings suggest that knowledge of the heterogeneity within business groups are essential for understanding the response of business group affiliates in light of the progression of reform process in India. This study thus contributes to a more complete conceptual understanding of the strategic responses of promarket reforms of business group affiliates in emerging economies.
Amit Baran Chakrabarti Arindam Mondal