"Business Group, Corporate Entrepreneurship and Internationalization: Evidence from India"

Abstract

Fine-grained research on business group will open up the black-box of performance implication of business group affiliation. This will address the puzzle of superior performance of business group affiliated firms in spite of disappearance of institutional voids in emerging economy. In this paper, we argue that despite some potential advantages, business group affiliation suppresses corporate entrepreneurship of firms. Taking a contingency perspective, we offer ‘degree of internalization’ as one way firms are able to offset the detrimental effects of business group affiliation and strengthen their corporate entrepreneurship. We also argue that internationalization directly enhances corporate entrepreneurship of firms. We find support for our predictions in a novel longitudinal data set of 604 Indian firms for four-year period (2010-2013). Our findings provide guidance to managers of business group on how they can improve upon their corporate entrepreneurship efforts through internationalization. This compl...