Business group affiliation and foreign subsidiary performance.

Sarah Castaldi*, Sathajit Gubbi, Vincent Kunst, Sjoerd Beugelsdijk

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

Business group (BG) affiliation affects the strategic behavior and performance of firms.Until now it has been theoretically unclear and insufficiently empirically tested whether affiliation advantages extend to the foreign subsidiaries of group members. We attempt to determine if they do, and if so, to identify the boundary conditions that matter. We analyze a large panel of 451 foreign subsidiaries of 136 Indian multinational firms over the 2003–2012 period and find that BG affiliation does enhance foreign subsidiary performance when host-market institutions are weak and when the parent is in manufacturing
Original languageEnglish
Pages (from-to)595-617
Number of pages23
JournalGlobal Strategy Journal
Volume9
Issue number4
DOIs
Publication statusPublished - 2019
Externally publishedYes

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