International diversification, business group affiliation and firm performance: Empirical evidence from India

Ajai S. Gaur, Vikas Kumar

Research output: Contribution to journalArticlepeer-review

160 Scopus citations

Abstract

We investigate the impact of business group affiliation on the relationship between international diversification and firm performance for emerging economy firms. We develop the theoretical arguments based on an integration of the literature on international diversification with the institutional theory perspective. We argue for a U-shaped relationship between international diversification and firm performance, and suggest that a firm's affiliation to a business group moderates the relationship between international diversification and firm performance. Based on a sample of Indian firms, we find that firm performance is positively related to the degree of internationalization, while business group affiliation reduces the positive effect of internationalization on firm performance.

Original languageEnglish (US)
Pages (from-to)172-186
Number of pages15
JournalBritish Journal of Management
Volume20
Issue number2
DOIs
StatePublished - Jun 2009
Externally publishedYes

All Science Journal Classification (ASJC) codes

  • Business, Management and Accounting(all)
  • Strategy and Management
  • Management of Technology and Innovation

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