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 language | English (US) |
|---|---|
| Journal | Academy of Management Annual Meeting Proceedings |
| DOIs | |
| State | Published - 2006 |
| Externally published | Yes |
| Event | 66th Annual Meeting of the Academy of Management, AOM 2006 - Atlanta, GA, United States Duration: Aug 11 2006 → Aug 16 2006 |
All Science Journal Classification (ASJC) codes
- Management Information Systems
- Management of Technology and Innovation
Keywords
- Business groups
- Emerging market firms
- Institutional transition