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

Sumon Bhaumik, Saul Estrin () and Tomasz Mickiewicz
Additional contact information
Saul Estrin: London School of Economics

Asia Pacific Journal of Management, 2017, vol. 34, issue 2, No 3, 311 pages

Abstract: 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.

Keywords: Emerging economies; Business groups; Entrepreneurial orientation; India (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://link.springer.com/10.1007/s10490-016-9477-9 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
Working Paper: Ownership identity, strategy and performance: business group affiliates versus independent firms in India (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:asiapa:v:34:y:2017:i:2:d:10.1007_s10490-016-9477-9

Ordering information: This journal article can be ordered from
http://www.springer. ... 29/journal/10490/PS2

DOI: 10.1007/s10490-016-9477-9

Access Statistics for this article

Asia Pacific Journal of Management is currently edited by Jane Lu

More articles in Asia Pacific Journal of Management from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().