Business group affiliation as institutional linkages in China’s emerging economy : A focus on organizational traits and institutional conditions

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

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Detail(s)

Original languageEnglish
Pages (from-to)675-697
Journal / PublicationAsia Pacific Journal of Management
Volume34
Issue number3
Online published3 Jun 2017
Publication statusPublished - Sep 2017
Externally publishedYes

Abstract

We conceptualize business group affiliation as institutional linkages by integrating the resource-based view and institutional perspective to examine its direct and moderating effects on firm value in emerging economies. In a sample of 1233 Chinese listed companies, we find that while business group affiliation has mixed direct effects, it moderates the effects of organizational traits and institutional conditions on firm value. Specifically, group affiliation aggravates old firms’ “liability of oldness,” but helps mitigate large firms’ “liability of bigness.” Besides, business group affiliation can reduce the liabilities that institutional voids bring about, as evidenced in its moderating effects on the relationship between regional under-development/industrial restriction and firm value. Our findings point to the moderating effects of business group affiliation in emerging economies.

Research Area(s)

  • Business group affiliation, Emerging economies, Firm value, Institutional linkages, Institutional perspective, Resource-based view

Citation Format(s)