Abstract
We examine the impact of firm-level governance structure on the innovation and internationalization strategies of emerging market firms. We propose that in the case of emerging market firms, governance is a response to the prevailing institutional environment and affects the innovation and internationalization strategies of firms. Based on a longitudinal sample of 16,337 firm-year observations of Indian listed firms over a year time period from 2002 to 2009, we find a positive effect of family ownership and group affiliation on R&D intensity and new foreign investments. Institutional ownership also positively affects new foreign investments, but has no effect on R&D intensity. Further, we find that R&D intensity interacts with family ownership, institutional ownership and group affiliation in affecting new foreign investments.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 300-309 |
| Number of pages | 10 |
| Journal | Journal of International Management |
| Volume | 19 |
| Issue number | 3 |
| DOIs | |
| State | Published - Sep 2013 |
All Science Journal Classification (ASJC) codes
- Business and International Management
- Finance
- Strategy and Management
Keywords
- Business groups
- Family ownership
- Institutional ownership
- Internationalization
- R&D intensity