Ownership identity, strategy and performance:business group affiliates versus independent firms in India

Kumar Bhaumik, Sumon, Estrin, Saul and Mickiewicz, Tomasz (2017). Ownership identity, strategy and performance:business group affiliates versus independent firms in India. Asia Pacific Journal of Management, 34 (2), 281–311.

Abstract

We consider whether the impact of entrepreneurial orientation on business performance is moderated by the company affiliation with business groups. Within business groups, we explore the trade-off between inter-firm insurance that enables risk-taking, and inefficient resource allocation. Risk-taking in group affiliated firms leads to higher performance, compared to independent firms, but the impact of proactivity is attenuated. Utilizing Indian data, we show that risk-taking may undermine rather than improve business performance, but this effect is not present in business groups. Proactivity enhances performance, but less so in business groups. Firms can also enhance performance by technological knowledge acquisition, but these effects are not significantly different for various ownership categories.

Publication DOI: https://doi.org/10.1007/s10490-016-9477-9
Divisions: Aston Business School > Economics, Finance & Entrepreneurship
Aston Business School
Additional Information: © The Author(s) 2016. This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made.
Uncontrolled Keywords: business groups,emerging economies,entrepreneurial orientation,India,Strategy and Management,Economics, Econometrics and Finance (miscellaneous),Business and International Management
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Related URLs: http://www.scop ... tnerID=8YFLogxK (Scopus URL)
http://link.spr ... 0490-016-9477-9 (Publisher URL)
Published Date: 2017-06-01
Published Online Date: 2016-07-30
Authors: Kumar Bhaumik, Sumon
Estrin, Saul
Mickiewicz, Tomasz ( 0000-0001-5261-5662)

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