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Context-bridging and context-embedded experience: Growth drivers of emerging economy business groups

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  • Danchi Tan

    (National Chengchi University)

  • Klaus E. Meyer

    (Western University)

Abstract

This study examines emerging economy business groups’ growth directions during institutional change. Building on Penrose’s Theory of Growth of the Firm, we explore managerial resources as foundations for growth. Specifically, we argue that their growth directions are critically shaped by the nature of managerial experience of business groups. Experience that is context-embedded supports growth within the existing strategic paradigm, whereas context-bridging experience enables international growth. We test hypotheses derived from this theoretical argument for business groups in Taiwan, and find empirical support for our arguments.

Suggested Citation

  • Danchi Tan & Klaus E. Meyer, 2021. "Context-bridging and context-embedded experience: Growth drivers of emerging economy business groups," Asia Pacific Journal of Management, Springer, vol. 38(2), pages 401-434, June.
    • Handle: RePEc:kap:asiapa:v:38:y:2021:i:2:d:10.1007_s10490-019-09658-0
    DOI: 10.1007/s10490-019-09658-0
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