Under what institutional conditions do business groups enhance innovation performance?

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

44 Scopus Citations
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  • Chengqi Wang
  • Jingtao Yi
  • Mario Kafouros
  • Yanni Yan

Related Research Unit(s)


Original languageEnglish
Pages (from-to)694-702
Journal / PublicationJournal of Business Research
Issue number3
Online published5 Sep 2014
Publication statusPublished - Mar 2015


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.

Research Area(s)

  • Business group, China, Government, Innovation, Institutions, State ownership