Under what institutional conditions do business groups enhance innovation performance?

Wang, Chengqi; Yi, Jingtao; Kafouros, Mario; Yan, Yanni

Abstract

This study examines the institutional mechanisms through which business groups impact innovation in emerging markets. Rather than merely viewing groups as the result of a weak institutional environment, this study proposes that there are complementary elements between groups and institutions, enabling groups to benefit from interactions with their institutional environment. Evidence from a large sample of Chinese firms indicates that the effects of groups on innovation are pronounced when the group is affiliated to a higher level government agency and when the level of region-specific marketization is higher. The findings point to the context-dependent nature of the innovation and the existence of both substitution and complementary effects between business groups and institutions.

Citation

Wang, C., Yi, J., Kafouros, M., & Yan, Y. (2015). Under what institutional conditions do business groups enhance innovation performance?. Journal of Business Research, 68(3), 694-702. doi:10.1016/j.jbusres.2014.08.002

• Journal Article Type: Article
• Acceptance Date: Aug 16, 2014
• Online Publication Date: Sep 5, 2014
• Publication Date: Mar 31, 2015
• Deposit Date: Jul 23, 2018
• Publicly Available Date: Feb 8, 2019
• Print ISSN: 0148-2963
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 68
• Issue: 3
• Pages: 694-702
• DOI: https://doi.org/10.1016/j.jbusres.2014.08.002
• Public URL: https://nottingham-repository.worktribe.com/output/1097018
• Publisher URL: https://www.sciencedirect.com/science/article/pii/S0148296314002586?via%3Dihub