Business groups, internationalisation, and institutional change: evidence from India'

Business groups, internationalisation, and institutional change: evidence from India'

Principal speaker

Professor Torben Pedersen

Abstract:

The relationship between business group affiliation and firm internationalisation remains unclear, in that business group affiliation provides access to resources that might promote internationalisation but also applies a local imprint. Previous literature has focused on the former effect of business group affiliation; this article scrutinises the local imprint more closely. The results obtained from an empirical analysis of Indian firm data over 21 years confirm a negative relationship between business group affiliation and the degree of internationalisation. The relationship between business group affiliation and internationalisation also appears moderated by institutional changes, as indicated by evidence that the negative relationship between business group affiliation and internationalisation fades as institutional evolution takes root in India. These findings imply that the advantages of business group affiliation tend to be rather bound to the location, such that business group firms may be slower than unaffiliated firms in adapting to new institutional environments in times of rapid institutional changes.

Speaker:

Torben Pedersen is Professor at the Copenhagen Business School. His research interests is in the interface between strategy and international management and he has published over 100 articles and books concerning the managerial and strategic aspects of globalisation. His research has appeared in prominent journals such as Academy of Management Journal, Strategic Management Journal, Journal of Management, Journal of International Business Studies, Journal of Management Studies and Organization Science. In addition, he has written more than 25 teaching cases published at IVEY case clearing house or in teaching-oriented books. He has been involved in numerous research projects conducted in collaboration with companies like LEGO, Vestas, Coloplast, and Novo Nordisk. He is co-editor of Global Strategy Journal and Advances in International Management as well as serves on numerous editorial boards.

Torben has been a visiting scholar in Australia (AGSM and UNSW), Finland (Hanken), India (Park Global Business School), Italy (Bocconi University and Padova University), New Zealand (Auckland University), Singapore (SMU), Spain (Valencia), Sweden (Gothenburg University) and USA (Stanford University). He was Vice-President for AIB (2008-2010) and Program chair in 2009 for the AIB-conference in San Diego. He was also Vice Chairman of EIBA from 2007-2010.


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