Chinese MNE acquisition of unrelated foreign businesses: The role of diversified business group affiliation, private ownership and strategic asset seeking

2021 ◽  
Vol 129 ◽  
pp. 145-156
Author(s):  
Xinwei Shi ◽  
Dylan Sutherland ◽  
Christopher Williams ◽  
Ke Rong
Keyword(s):  
Business Group ◽  
Private Ownership ◽  
Group Affiliation ◽  
Business Group Affiliation

scholarly journals Consistency of Debt Policy: An Intrinsic Role of Business Group Affiliation

2021 ◽  
Vol 10 (1) ◽  
pp. 1-28
Author(s):  
Wajiha Rasheed ◽  
Kanwal Iqbal Khan ◽  
Syed Muhammad Waqar Azeem Naqvi ◽  
Shahid Mahmood
Keyword(s):  
Business Group ◽  
Group Affiliation ◽  
Business Group Affiliation ◽  
Debt Policy

International new ventures and firm performance: evidence from India

2018 ◽  
Vol 30 (6) ◽  
pp. 645-659
Author(s):  
Mohammad Fuad ◽  
Mohammad Akbar
Keyword(s):  
Firm Performance ◽  
New Ventures ◽  
Business Group ◽  
International New Ventures ◽  
Group Affiliation ◽  
Content Type ◽  
Business Group Affiliation ◽  
Positive Effect ◽  
Moderating Role

Purpose This study aims to explore the role of liberalization, business group affiliation and degree of internationalization (DOI) on the performance of Indian international new ventures (INVs). Design/methodology/approach The study identifies Indian INVs incorporated between 1991 and 2010 against the backdrop of liberalization. To test various hypotheses, a random effects panel regression analysis was conducted for publicly listed Indian INVs. Findings The results highlight that business group affiliation and DOI are positively related to INV performance. Further, liberalization negatively moderates the relationship between group affiliation and INV performance. The authors’ findings indicate that as institutions improve, the positive effect of business group affiliation on firm performance decreases in emerging markets. Research limitations/implications This paper highlights the benefits accruing to business group affiliated INVs and the moderating role of liberalization on firm performance. Future studies may augment the authors’ understanding of INV performance by testing heterogeneity within business groups and their impact on INV performance across other emerging economies. Practical implications As institutional reforms strengthen over time, the positive effect of group affiliation on INV performance declines. Hence, managers of group affiliates need to adapt to the changing institutions faster and develop their fit with the institutional environment earlier than standalone firms, to mitigate their profitability issues. Originality/value To the best of the authors’ knowledge, this is the first paper to discuss the role of business group affiliation and the moderating role of liberalization on INV performance with theoretical and managerial implications.

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