Business group effects on the R&amp;D intensity-internationalization relationship: Empirical evidence from India

Purkayastha, Saptarshi; Manolova, Tatiana S.; Edelman, Linda F.

doi:10.1016/j.jwb.2016.11.004

Cited by 84 publications

(72 citation statements)

References 87 publications

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“…From an institutional theory perspective, by providing an internal market for capital, managerial talent, intermediate products, information, and other important strategic factors, BGs are a solution to factor market underdevelopment (Granovetter, 1995;Khanna & Palepu, 1997;Yiu et al, 2007). BGs help affiliated firms overcome external market deficiencies enablesing them to tap into growth opportunities (Lamin, 2013;Manikandan & Ramachandran, 2015;Purkayastha, Manolova, & Edelman, 2018), and to compete effectively-even survive (Belenzon, Berkovitz, & Rios, 2013;Chang & Hong, 2000;Estrin, Pouliakova, & Shapiro, 2009). BG affiliation is also known to facilitate member firms when coping with exogenous changes in the institutional environment (Gubbi et al, 2015) and respond effectively to threats posed by new competitors (Ayyagari, Dau, & Spencer, 2015).…”

Section: Bg Affiliation Advantagesmentioning

confidence: 99%

“…There has been little attention for the performance aspects of second-level firms such as foreign subsidiaries. This is surprising given the considerable growth in the number of BGs that have been expanding internationally over the last two decades (Bucheli et al, 2019;Gubbi, Aulakh, Ray, Sarkar, & Chittoor, 2010;Kim, Hoskisson, & Lee, 2015;Luo & Tung, 2007;Mukherjee et al, 2018;Purkayastha et al, 2018). BGs are driving globalization in many economies (Holmes et al, 2018) and have benefited from the pro-market reforms in emerging economies (Cuervo-Cazurra, Gaur, & Singh, 2019).…”

Section: Bg Affiliation Advantagesmentioning

confidence: 99%

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Business group affiliation and foreign subsidiary performance

Castaldi

Gubbi

Kunst

et al. 2019

Global Strategy Journal

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Research Summary Business group (BG) affiliation affects the strategic behavior and performance of firms. Until now it has been theoretically unclear and insufficiently empirically tested whether affiliation advantages extend to the foreign subsidiaries of group members. We attempt to determine if they do, and if so, to identify the boundary conditions that matter. We analyze a large panel of 451 foreign subsidiaries of 136 Indian multinational firms over the 2003–2012 period and find that BG affiliation does enhance foreign subsidiary performance when host‐market institutions are weak and when the parent is in manufacturing. Managerial Summary Our research speaks directly to managers of multinational firms who seek to leverage the benefits of BG affiliation across national borders. We show that BG affiliation is only beneficial when the foreign subsidiary is located in a country characterized by weak institutions and when the parent is in manufacturing. If, on the other hand, the foreign subsidiary is in a country with well‐functioning institutions and the parent in services, managers will not be able to count on BG advantages, rather they will have to develop competitive capabilities locally, that is, the foreign subsidiary will have to function more like a standalone firm.

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Section: Bg Affiliation Advantagesmentioning

confidence: 99%

Section: Bg Affiliation Advantagesmentioning

confidence: 99%

Business group affiliation and foreign subsidiary performance

Castaldi

Gubbi

Kunst

et al. 2019

Global Strategy Journal

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“…In addition to contributing and extending the theoretical relevance of RBV, especially in the context of EMNEs, this article also contributes to the R&D literature by focusing how important R&D activities are for MNEs (especially from emerging markets) as these are firm‐specific KBAs that are required to engage and compete effectively in foreign markets (Markusen, ). The article, by utilising theoretical insights from RBV (Slangen and Hennart, ), also provides further empirical evidence regarding the role of R&D capabilities in explaining successful internationalization of MNEs (Filatotchev and Piesse, ; Purkayastha et al, ). A lack of research exists examining the role of R&D capabilities in choice of ownership share sought in CBAs by MNEs from BRICS.…”

Section: Discussionmentioning

confidence: 99%

R&D capabilities, intellectual property strength and choice of equity ownership in cross‐border acquisitions: evidence from BRICS acquirers in Europe

et al. 2017

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The aim of the study is to investigate two relatively underexplored factors, namely, the R&D (research and development) capabilities of target firms and the strength of intellectual property (IP) institutions in target economies, that influences the choice of equity ownership in cross border acquisitions (CBAs) undertaken by multinational enterprises (MNEs) from BRICS (Brazil, Russia, India, China and South Africa) economies. They developed the key hypothesis on foreign market entry through CBAs by incorporating insights from transaction costs economics, the resource‐based view and institutional theory to investigate the determinants of full versus partial equity ownership. Using logistic regression estimation methods to a sample of 111 CBA deals of BRICS MNEs in 22 European countries, it was found that BRICS MNEs were likely to pursue full rather than partial acquisition mode when target firms have high R&D capabilities. However, the greater the degree of strength of IP institutions in target economies and higher the target firms’ R&D capabilities, the more likely it is for BRICS MNEs to undertake partial, rather than, full acquisition mode. They provided interesting theoretical insights and managerial implications that might underlie some of the key findings on CBAs by emerging market MNEs.

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“…Applicable literature has implicated the enterprise's endogenous strategy orientations the key factor determining its capacity endowment [12], and the fact that it plays a regulatory role in the process of international R&D to enhance the innovation performance [13]. Powerful innovation capacity endowment can bestow obvious advantages for an enterprise in the process of internationalization [14,15].Nonetheless, a number of issues remain which require further discussion, including how to build strategy orientation to promote the formulation and implementation of internationalization strategies. Fundamentally for this research, the mechanisms through which the strategy orientation's impacts can be realized on the intensity of international R&D need to be explored and examined [16][17][18].…”

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confidence: 99%

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confidence: 99%

Strategy Orientation, Innovation Capacity Endowment, and International R&D Intensity of Listed Companies in China

Chen

Tsai

2020

Sustainability

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Based on the endogenous factors which can affect the strategy of international R&D of China’s enterprises, an analysis is carried out on the relationship between market- and technology-orientation of the strategy and the intensity of international R&D. In addition, the mediation effects of innovation capacity endowment are discussed. On this basis, 254 listed enterprises with overseas R&D institutions approved by the Ministry of Commerce of China were taken as the sample for survey administration. The poisson regression method was adopted to test the hypotheses. Additionally, we utilized the Bootstrap method to confirm the robustness of the regression models. Results show that for Chinese enterprises with significant international R&D strategy intentions, market orientation has a significant inhibitory effect on their international R&D intensity, while the technology orientation has a significant stimulating effect on international R&D. In addition, innovation capacity has a significant positive impact on the intensity of international R&D, and plays a partial mediating role in the relationship between technology orientation and international R&D. Therefore, to promote international R&D strategies in the era of high-quality economic development, Chinese enterprises are suggested to establish an innovation-oriented strategy orientation to promote innovation cultural heritage, and to strengthen the accumulation of innovative resources and capabilities.

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Business group effects on the R&D intensity-internationalization relationship: Empirical evidence from India

Cited by 84 publications

References 87 publications

Business group affiliation and foreign subsidiary performance

Business group affiliation and foreign subsidiary performance

R&D capabilities, intellectual property strength and choice of equity ownership in cross‐border acquisitions: evidence from BRICS acquirers in Europe

Strategy Orientation, Innovation Capacity Endowment, and International R&D Intensity of Listed Companies in China

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