Survival of the foreign subsidiaries of TMNCs: The influence of business group affiliation
AbstractWe investigate the survival rates of the foreign subsidiaries of multinational firms from India to test if affiliation to a business group affects a subsidiary's survival chances. Business group affiliation is an important organizational attribute of firms in emerging economies. Business groups are complex organizations with heterogeneous resources that evolve along with changes in the institutional environment of a firm's home country. We examine how business group affiliation and the development stage of the host country jointly influence the survival chances of foreign subsidiaries. Our results show that business group affiliation does not have an independent influence on a subsidiary's survival rates, but it does have a contingent effect, where the contingency emerges from the development stage of the host country. Our findings thus have implications for the theory of TMNCs, and business group strategy in emerging economies.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of International Management.
Volume (Year): 13 (2007)
Issue (Month): 3 (September)
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Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/601266/description#description
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- Tolentino, Paz Estrella, 2008. "The determinants of the outward foreign direct investment of China and India: Whither the home country?," UNU-MERIT Working Paper Series 049, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology.
- Fortanier, Fabienne & Tulder, Rob van, 2008. "Internationalization trajectories - a crosscountry comparison: Are large Chinese and Indian companies different?," UNU-MERIT Working Paper Series 054, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology.
- Somnath Lahiri, 2011. "India-focused publications in leading international business journals," Asia Pacific Journal of Management, Springer, vol. 28(2), pages 427-447, June.
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