Ownership identity, strategy and performance

business group affiliates versus independent firms in India

Sumon Kumar Bhaumik, Saul Estrin, Tomasz Mickiewicz

Research output: Contribution to journalArticle

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.

Original languageEnglish
Pages (from-to)281–311
JournalAsia Pacific Journal of Management
Volume34
Issue number2
Early online date30 Jul 2016
DOIs
Publication statusPublished - 1 Jun 2017

Fingerprint

Ownership
India
Business groups
Risk taking
Business performance
Proactivity
Insurance
Trade-offs
Knowledge acquisition
Resource allocation
Entrepreneurial orientation
High performance
Technological knowledge

Bibliographical note

© 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.

Keywords

  • business groups
  • emerging economies
  • entrepreneurial orientation
  • India

Cite this

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Ownership identity, strategy and performance : business group affiliates versus independent firms in India. / Kumar Bhaumik, Sumon; Estrin, Saul; Mickiewicz, Tomasz.

In: Asia Pacific Journal of Management, Vol. 34, No. 2, 01.06.2017, p. 281–311.

Research output: Contribution to journalArticle

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