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Internationalization and Performance of firms from emerging markets - Clusters and Business Groups - Substitutes or Complements?

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  • Rajesh Srinivas Upadhyayula

    (Indian Institute of Management, Kozhikode)

Abstract

While extant literature highlight business groups as a response to institutional voids, recent studies emphasized that business groups continue to persist because of the information advantages they possess. Studies in the developed economy context have shown that firms in clusters could benefit significantly from the information advantages and perform better than firms outside clusters. In this study, we examine if clusters serve as an alternative response to business groups for internationalization and performance. We find that both clusters and business groups have a positive association with internationalization and performance of firms. In addition, we also find that clusters and business groups serve as substitutes in explaining the performance of firms.

Suggested Citation

  • Rajesh Srinivas Upadhyayula, 2019. "Internationalization and Performance of firms from emerging markets - Clusters and Business Groups - Substitutes or Complements?," Working papers 320, Indian Institute of Management Kozhikode.
    • Handle: RePEc:iik:wpaper:320
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    Keywords

    Internationalization; Emerging markets; Clusters and Business Groups;
    All these keywords.

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