Abstract
The present study examines whether business group affiliates engage in social capital and knowledge sharing relations with firms within their groups more than they do with peers outside the group. In addition, this study compares group affiliated and independent firms in terms of performance and innovation. Using survey data from 128 Turkish business group affiliated and independent manufacturing firms, findings indicate that while group firms’ relations within and outside the group show significant differences in terms of tacit, explicit knowledge sharing and social capital in the form of trust, affiliated and independent firms do not differ in terms of performance, innovation and other characteristics, such as institutional support, organizational capital and absorptive capacity. This study contributes to the business group research by examining whether affiliation creates value for firms in an emerging economy.
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