Under what institutional conditions do business groups enhance innovation performance?

Chengqi Wang, Jingtao Yi, Mario Kafouros and Yanni Yan

Journal of Business Research, 2015, vol. 68, issue 3, 694-702

Abstract: This study examines the institutional mechanisms through which business groups impact innovation in emerging markets. Rather than merely viewing groups as the result of a weak institutional environment, this study proposes that there are complementary elements between groups and institutions, enabling groups to benefit from interactions with their institutional environment. Evidence from a large sample of Chinese firms indicates that the effects of groups on innovation are pronounced when the group is affiliated to a higher level government agency and when the level of region-specific marketization is higher. The findings point to the context-dependent nature of the innovation and the existence of both substitution and complementary effects between business groups and institutions.

Keywords: Business group; Innovation; Institutions; Government; State ownership; China (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (31)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:68:y:2015:i:3:p:694-702

DOI: 10.1016/j.jbusres.2014.08.002

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