Business Group Affiliation, Innovation, Internationalization, and Performance: A SemiParametric Analysis

Iona, Alfonsina; Leonida, Leone; Navarra, Pietro

doi:10.1111/j.2042-5805.2013.01060.x

Cited by 20 publications

(19 citation statements)

References 71 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Aguilera et al (2019) provide an excellent survey of research on BG internationalization, but conclude that, ''Research on internationalization of BGs is a topic that has received less attention than their economic relevance in the world.'' Research touching on the internationalization of BGs to varying degrees (Bucheli et al, 2019;Castaldi, Gubbi, Kunst, & Beugelsdijk, 2019;Chari 2013, Chen & Jaw, 2014Chung & Dahms, 2018, 2019Fuad & Sinha, 2018;Garg & Delios, 2007Gubbi, Aulakh, & Ray, 2015;Guillén, 2003;Holmes et al, 2018;Iona, Leonida, & Navarra, 2013;Kumar et al, 2012;Mukherjee et al, 2018;Purkayastha et al, 2018) reveals a few stylized facts.…”

Section: Internationalization Of Bgs and Globalizationmentioning

confidence: 99%

Business groups and the study of international business: A Coasean synthesis and extension

2021

View full text Add to dashboard Cite

This paper harmonizes the business group literature in international business and across relevant fields within a unified theoretical framework. Business groups (firms under common control but with different, if overlapping, owners) are economically important in much of the world. Business groups’ economic significance co-evolves with their economies' institutions and market environments, patterns of particular interest to international business scholars. The vast literature on business groups raises discordant perspectives. This paper first proposes a unifying definition and provides a list of stylized historical observations on business groups across different parts of the world. It then develops a Coasean framework to harmonize seemingly disparate views from the literature by building on recent surveys and the stylized historical patterns of business groups. We enlist two concepts – fallacies of composition/decomposition and time inconsistency – to harmonize these perspectives. This yields a theoretical framework for understanding business groups that mobilizes concepts long-used to understand multinational enterprises: the economy's market and hierarchical transaction costs, openness, and their dynamic interactions. We then apply this framework to globalization and business group internationalization. This work leads to an overarching research agenda encompassing seemingly inconsistent prior work.

show abstract

Section: Internationalization Of Bgs and Globalizationmentioning

confidence: 99%

Business groups and the study of international business: A Coasean synthesis and extension

2021

View full text Add to dashboard Cite

show abstract

“…Internationalization is an important strategic move taken by firms from emerging markets (Gaur et al, 2014). It helps firms enhance revenue and performance as they get access to new markets and technologies (Chari, 2013;Gaur et al, 2014;Gaur and Kumar, 2009;Iona et al, 2013). Firms get useful information or learn from their BG network partners in their internationalization process (Elango and Pattnaik, 2007;Tan and Meyer, 2010).…”

Section: Internationalization Of Firms In Bg Networkmentioning

confidence: 99%

“…Moreover, BG network also has implications for the performance benefits that can accrue to the affiliated firms (e.g. Gaur and Kumar, 2009;Iona et al, 2013).…”

Section: Internationalization Of Firms In Bg Networkmentioning

confidence: 99%

“…Chen and Jaw, 2014;Lamin, 2013;Yiu et al, 2007), internationalization (e.g. Elango and Pattnaik, 2007;Gaur and Kumar, 2009;Gubbi et al, 2015;Iona et al, 2013;Lamin, 2013), and innovation (e.g. Carney et al, 2011;Chacar and Vissa, 2005;Chang et al, 2006;Iona et al, 2013).…”

Section: Introductionmentioning

confidence: 99%

“…Elango and Pattnaik, 2007;Gaur and Kumar, 2009;Gubbi et al, 2015;Iona et al, 2013;Lamin, 2013), and innovation (e.g. Carney et al, 2011;Chacar and Vissa, 2005;Chang et al, 2006;Iona et al, 2013). A few studies have considered the variation in BG network structure and attempted to understand its implications for BG-level variables, such as innovativeness (Mahmood et al, 2013) and diversification (Chen and Jaw, 2014), or affiliated firm-level variables such as R&D capability (Mahmood et al, 2011).…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Diffusion of internationalization in business group networks: evidence from India

Shukla

Akbar

2018

View full text Add to dashboard Cite

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.

show abstract

Beacons not burdens: Business groups and corporate social performance around the world

Krammer,

Porumb,

Zengin‐Karaibrahimoglu

et al. 2024

Global Strategy Journal

View full text Add to dashboard Cite

Research SummaryPrior studies on business groups (BGs) have predominantly focused on the impact of group affiliation on financial performance. In contrast, we argue that BG affiliates will outperform standalone firms in terms of corporate social performance (CSP) and that this effect will be positively moderated by the strength of formal and informal institutions. Moreover, we examine also differences among BGs and hypothesize that diversification and hierarchy of the group will negatively affect the CSP of affiliates. Employing a panel of 4368 firms from 43 countries between 2003 and 2016 and a propensity score matching approach in our regressions, we find robust support for these predictions. Our findings advance two distinct strands of literature on BGs and, respectively, corporate social responsibility.Managerial SummaryBG are a common organizational structure in many countries. Despite this, we still do not know much about them beyond their financial performance. In this study, we focus on examining the impact of BG affiliation on non‐financial performance (i.e., CSP) in the light of growing societal grand challenges. Using an international dataset of several thousands of firms, we find out that BG affiliates exhibit superior CSP results compared to non‐affiliated firms. These positive effects of affiliation are increased in environments with strong formal and informal institutions but reduced within groups that are more diversified and hierarchical. Our findings showcase the importance of BGs in tackling some of today's grand challenges and provide support for more nuanced approaches to study BGs across countries.

show abstract

Business Group Affiliation, Innovation, Internationalization, and Performance: A SemiParametric Analysis

Cited by 20 publications

References 71 publications

Business groups and the study of international business: A Coasean synthesis and extension

Business groups and the study of international business: A Coasean synthesis and extension

Diffusion of internationalization in business group networks: evidence from India

Beacons not burdens: Business groups and corporate social performance around the world

Contact Info

Product

Resources

About