Business groups in developing capital markets: Towards a complementarity perspective

Chittoor, Raveendra; Kale, Prashant; Puranam, Phanish

doi:10.1002/smj.2287

Cited by 136 publications

(127 citation statements)

References 71 publications

(156 reference statements)

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“…But synergies can also be conditioned by the firm's external environment. For instance, in the emerging markets, capital-raising can be challenging without an existing reputation (Chittoor, Kale & Puranam, 2015;Khanna & Rivkin, 2001;Khanna & Palepu, 2000). In such a circumstance the financial synergy made possible in capital raising may swamp the "attention" costs of unrelated diversification.…”

Section: Conclusion and Future Research Directionsmentioning

confidence: 99%

Redirecting Research Efforts on the Diversification–Performance Linkage: The Search for Synergy

Ahuja

Novelli

2017

ANNALS

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This is the accepted version of the paper.This version of the publication may differ from the final published version. Permanent repository link AcknowledgmentsThe authors would like to thank the editors and reviewers for their very constructive and insightful comments through the review process. Elena Novelli also gratefully acknowledges the financial support of the ESRC Future Research Leaders Scheme (Grant ES/K001388/1) and Cass Business School. Gautam Ahuja would like to thank the University of Michigan for support. 2 AbstractWe review the literature on the diversification-performance (D-P) relationship to a) propose that the time is ripe for a renewed attack on understanding the relationship between diversification and firm performance, and b) outline a new approach to attacking the question.Our paper makes four main contributions. First, through a review of the literature we establish the inherent complexities in the D-P relationship and the methodological challenges confronted by the literature in reaching its current conclusion of a non-linear relationship between diversification and performance. Second, we argue that to better guide managers the literature needs to develop along a complementary path -whereas past research has often focused on answering the big question of does diversification affect firm performance, this second path would focus more on identifying the precise micro-mechanisms through which diversification adds or subtracts value. Third, we outline a new approach to the investigation of this topic, based on (a) identifying the precise underlying mechanisms through which diversification affects performance; (b) identifying performance outcomes that are "proximate" to the mechanism that the researcher is studying, and (c) identifying an appropriate research design that can enable a causal claim. Finally, we outline a set of directions for future research.3

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Section: Conclusion and Future Research Directionsmentioning

confidence: 99%

Redirecting Research Efforts on the Diversification–Performance Linkage: The Search for Synergy

Ahuja

Novelli

2017

ANNALS

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“…The reason for this unexpected result could be the following -although existing research (e.g., Khanna and Palepu, 2000) mainly views business groups in India as a response to institutional voids in the pre-liberalization era, their continued presence and even growth in the post-liberalization era could suggest that they play a facilitating role in helping affiliated companies adapt to institutional change (Chittoor et al, 2008;Guillen, 2000;Yiu et al, 2005). The results could also indicate that affiliation with business groups is complementary to the reforms, as argued by Chittoor et al (2014).…”

Section: Resultsmentioning

confidence: 73%

The Effect of Institutional Evolution on Indian Firms' Internationalization: Disentangling Inward- and Outward-Oriented Effects

Stucchi¹,

Pedersen²,

Kumar³

2015

Long Range Planning

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“…In agreement with previous research on BG affiliation for Indian firms (Khanna and Palepu 2000;Chittoor et al 2014), we adopt CMIE's classification of firms to identify whether an individual firm belonged to a business group or it was a stand-alone firm.…”

Section: Randd and Marketing Intensity (Randd And Mktg)mentioning

confidence: 92%

“…To control for the effect of other factors which also may affect the variables of interest in our study, a comprehensive set of other variables are included (Khanna and Palepu 2000;Chittoor et al 2014) such as firm size, research and development intensity, marketing intensity, business group affiliation, and industry dummy.…”

Section: Control Variablesmentioning

confidence: 99%

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Can Flexibility in Corporate Governance Enhance International Competitiveness? Evidence from Knowledge-Based Industries in India

Haldar

Rao

Momaya

2016

Glob J Flex Syst Manag

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Firms play a key role in growth of India, and there is a need to enhance their competitiveness significantly. For that, they may need higher flexibility in their governance systems. This paper explores the relationship between flexibility in corporate governance (CG) mechanisms and international competitiveness (IC) in two knowledge-based industries in India during the period from 2006 to 2014. Using multiple regression model, the results suggest that flexibility in CG significantly affects IC. In addition, IC increases with the increase in firm size in the presence of other factors such as research and development intensity, marketing intensity, business group affiliation, and industry dummy. Thus, the study is a novel attempt to establish the relationship between flexibility in CG and IC.

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Business groups in developing capital markets: Towards a complementarity perspective

Abstract: Prior research suggests that business groups (BGs)

Cited by 136 publications

References 71 publications

Redirecting Research Efforts on the Diversification–Performance Linkage: The Search for Synergy

Redirecting Research Efforts on the Diversification–Performance Linkage: The Search for Synergy

The Effect of Institutional Evolution on Indian Firms' Internationalization: Disentangling Inward- and Outward-Oriented Effects

Can Flexibility in Corporate Governance Enhance International Competitiveness? Evidence from Knowledge-Based Industries in India

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