How Does Ownership Type Influence International Diversification-Firm Performance Relationship?

Saptarshi Purakayastha () and Somnath Lahiri ()
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Saptarshi Purakayastha: Indian Institute of Management Calcutta
Somnath Lahiri: Illinois State University

Chapter Chapter 8 in Services Marketing Issues in Emerging Economies, 2020, pp 89-117 from Springer

Abstract: Abstract International diversification and its effect on the firm remains a key theme in business literature. Yet how international diversification-firm performance (IDP) relationship is influenced by firms’ ownership has not been adequately examined. This represents an important gap in the literature as owners differ significantly in motivations, capabilities, and governing styles. Drawing on the resource-based view of the firm, agency theory, and institutional perspective, this study examines how ownership type impacts IDP relationship of a sample of 1074 publicly-listed Indian firms. Results suggest that family- and domestic corporate ownership positively moderates IDP relationship but foreign corporate ownership results in negative moderation. Results further suggest that domestic- and foreign financial institutional ownership imparts no statistically significant influence on IDP relationship. These findings are new to the literature. In conclusion, we discuss our study’s implications and limitations and provide directions for future research.

Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-15-8787-0_8

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DOI: 10.1007/978-981-15-8787-0_8

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