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

Sumon Kumar Bhaumik, Saul Estrin*, Tomasz Mickiewicz

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review


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
Issue number2
Early online date30 Jul 2016
Publication statusPublished - 1 Jun 2017

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.


  • business groups
  • emerging economies
  • entrepreneurial orientation
  • India


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