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

Bhaumik, Sumon Kumar, Estrin, Saul and Mickiewicz, Tomasz (2016) Ownership identity, strategy and performance: business group affiliates versus independent firms in India. Asia Pacific Journal of Management . pp. 1-31. ISSN 0217-4561

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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

Item Type: Article
Official URL: http://link.springer.com/journal/10490
Additional Information: © 2016 Springer © CC-BY 4.0
Library of Congress subject classification: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
H Social Sciences > HD Industries. Land use. Labor > HD61 Risk Management
Sets: Departments > Management
Project and Funder Information:
Project IDFunder NameFunder ID
SG-54061British Academyhttp://dx.doi.org/10.13039/501100000286
Date Deposited: 23 Jun 2016 13:14
URL: http://eprints.lse.ac.uk/66992/

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