Business group affiliation and firm performance during institutional transition

Ajai Gaur, Andrew Delios

Research output: Contribution to conferencePaper

9 Citations (Scopus)

Abstract

We investigate the performance implications of business group affiliation over a longitudinal period to capture the effects of institutional transitions. Drawing from the institutional voids and market failure perspectives of business groups, we argue that as institutions in a country evolve and markets for capital, labor and products develop, the positive effects of group affiliation will decline, while the negative effects will increase. We test our arguments on a sample of 8,882 Indian firms, 3,087 of which are affiliated with business groups and 5,795 of which are not. We look at the 12 year time period, from 1993-2004, during which there has been substantial development in various markets in India. We find that group affiliation becomes affiliated with lower firm performance during a period in which substantial institutional transitions have taken place.

Original languageEnglish (US)
StatePublished - Dec 1 2006
Externally publishedYes
Event66th Annual Meeting of the Academy of Management, AOM 2006 - Atlanta, GA, United States
Duration: Aug 11 2006Aug 16 2006

Other

Other66th Annual Meeting of the Academy of Management, AOM 2006
CountryUnited States
CityAtlanta, GA
Period8/11/068/16/06

Fingerprint

Industry
Personnel
Institutional transitions
Firm performance
Business groups
Labor
India
Market failure

All Science Journal Classification (ASJC) codes

  • Management Information Systems
  • Management of Technology and Innovation

Cite this

Gaur, A., & Delios, A. (2006). Business group affiliation and firm performance during institutional transition. Paper presented at 66th Annual Meeting of the Academy of Management, AOM 2006, Atlanta, GA, United States.
Gaur, Ajai ; Delios, Andrew. / Business group affiliation and firm performance during institutional transition. Paper presented at 66th Annual Meeting of the Academy of Management, AOM 2006, Atlanta, GA, United States.
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Gaur, A & Delios, A 2006, 'Business group affiliation and firm performance during institutional transition' Paper presented at 66th Annual Meeting of the Academy of Management, AOM 2006, Atlanta, GA, United States, 8/11/06 - 8/16/06, .

Business group affiliation and firm performance during institutional transition. / Gaur, Ajai; Delios, Andrew.

2006. Paper presented at 66th Annual Meeting of the Academy of Management, AOM 2006, Atlanta, GA, United States.

Research output: Contribution to conferencePaper

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Gaur A, Delios A. Business group affiliation and firm performance during institutional transition. 2006. Paper presented at 66th Annual Meeting of the Academy of Management, AOM 2006, Atlanta, GA, United States.