Portfolios of Political Ties and Business Group Strategy in Emerging Economies

2014 ◽  
Vol 59 (4) ◽  
pp. 599-638 ◽  
Author(s):  
Hongjin Zhu ◽  
Chi-Nien Chung
Keyword(s):  
Emerging Economies ◽  
Business Group ◽  
Political Ties ◽  
Group Strategy

scholarly journals The Competitiveness of Business Groups and Their Affiliates in International Operations

2016 ◽  
Vol 8 (1) ◽  
pp. 251-262
Author(s):  
Roderick Caballero Bugador
Keyword(s):  
Emerging Economies ◽  
Critical Review ◽  
Business Groups ◽  
Business Group ◽  
Emerging Economy ◽  
Theoretical Background ◽  
International Expansion ◽  
Vast Literature ◽  
International Operations ◽  
Managerial Capabilities

AbstractThe discourse on the competitiveness of emerging economy firms continues with globalization. This paper joins the dialogue by providing a framework of the competitiveness of business groups and their affiliates in international operations. The goal is to address the vast literature on emerging economies that remains short in providing the theoretical background on the competitiveness of emerging and transitioning economy firms. To do this, this study used a critical review and analysis of the literature. It offers some propositions to illustrate the applicability of the framework in analyzing the international expansion of business group affiliates across borders. Ultimately, the paper contributes to the literature on managerial capabilities and competitiveness of firms to sustain their operations as the new emerging economy multinationals.

Corporate governance, firm performance, and business group affiliation: evidence from India

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Neeti Khetarpal Sanan ◽  
Dinesh Jaisinghani ◽  
Sangeeta Yadav
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Empirical Evidence ◽  
Emerging Economies ◽  
Chief Executive ◽  
Business Group ◽  
Independent Directors ◽  
Group Affiliation ◽  
Content Type ◽  
Business Group Affiliation

Purpose The purpose of this paper is to investigate whether, in emerging economies, the relationship between a firm’s corporate governance (CG) and its performance is associated with firm’s affiliation to a business group. Design/methodology/approach A total of 209 publicly listed firms in India during a 10-year period from 2007 to 2016 were studied, and the random effects model was employed for analysis. Findings Empirical evidence showed that board size and institutional shareholding positively impacted firm performance, whereas the proportion of independent directors negatively impacted performance. In group-affiliated firms in emerging economies, chief executive officer duality negatively impacted, whereas institutional shareholding positively impacted performance. These results are consistent with the principal–principal agency theory. The study found no discernible impact of proportion of independent directors on firm performance in group-affiliated firms. Originality/value In analyzing the governance–performance relationship and its association with business groups, this study extends current understanding by connecting business group research in emerging economies with CG and firm performance research. In examining firms from several industries over a long period of time after controlling for firm size, capital structure and spends on research and development and marketing, the results of this study offer rich empirical evidence that contributes to the extant literature on the nature of the governance–performance relationship.

Trade credit in emerging economies: an interorganizational power perspective

2020 ◽  
Vol 120 (4) ◽  
pp. 768-783 ◽  
Author(s):  
Bai Liu ◽  
Yibo Wang ◽  
Yongyi Shou
Keyword(s):  
Market Power ◽  
Market Share ◽  
Emerging Economies ◽  
Trade Credit ◽  
Resource Dependence Theory ◽  
Interactive Effects ◽  
Content Type ◽  
Political Ties ◽  
Buyer Power ◽  
The Impact

PurposeThe extant literature recognizes that trade credit is influenced by the power imbalance between buyers and suppliers but most studies focus on either buyer power or supplier power. The purpose of this study is to investigate how buyer power and supplier power interact and jointly influence trade credit. Moreover, this study examines the moderating effects of political ties in an emerging economy context.Design/methodology/approachA research framework was developed by combining resource dependence theory and institutional theory to investigate the interactive effects of market power (i.e. market share and supplier concentration) and non-market power (i.e. political ties) on trade credit. The proposed hypotheses were empirically tested by a fixed effects model using secondary data from 2,433 listed firms in China.FindingsThe results show that a buyer firm's market share promotes trade credit but this effect is weakened by supplier concentration. Moreover, the buyer's political ties enhance the impact of market share on trade credit and attenuate the negative moderating effect of supplier concentration.Originality/valueThis study contributes to the trade credit and supply chain power literature by identifying the interactive effects of market share, supplier concentration and political ties in trade credit. It advances our understanding of how trade credit is jointly determined by a variety of factors in emerging economies.

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