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The postentry performance of business groups’ new venture affiliates

Author

Listed:
  • Chien-Nan Chen

    (Department of Business Administration, National Dong Hwa University, Hualien Taiwan)

  • Chengli Tien

    (Department of East Asian Studies, National Taiwan Normal University, Taipei, Taiwan)

  • Bernard Gan

    (Department of International Business and Asian Studies, Griffith Business School, Griffith University, Nathan, QLD, Australia)

Abstract

Using resource dependence theory, this study examines the determinants of firm performance among business groups’ new venture affiliates using a sample of 1512 new venture affiliates associated with 104 large-sized business groups in Taiwan. The empirical findings reveal that improved affiliate postentry performance is linked to the relative size of a business group’s new venture affiliate and the level of autonomy inherent in decision-making. Furthermore, when the product market of a new venture affiliate is resource-related to its affiliated business group’s main business, this affiliate may benefit from resource relatedness with an improved return on equity. JEL Classification : M10, M16, M38

Suggested Citation

  • Chien-Nan Chen & Chengli Tien & Bernard Gan, 2019. "The postentry performance of business groups’ new venture affiliates," Australian Journal of Management, Australian School of Business, vol. 44(2), pages 325-343, May.
    • Handle: RePEc:sae:ausman:v:44:y:2019:i:2:p:325-343
    DOI: 10.1177/0312896218792965
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    More about this item

    Keywords

    Business group affiliate; new venture; postentry performance; resource dependence;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration
    • M38 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Government Policy and Regulation

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