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Title: When and how does business group affiliation promote firm innovation? A tale of two emerging economies
Authors: Chang, S.-J.
Chung, C.-N. 
Mahmood, I.P. 
Keywords: Business groups
Comparative institutional perspective
Emerging economies
Issue Date: 2006
Citation: Chang, S.-J., Chung, C.-N., Mahmood, I.P. (2006). When and how does business group affiliation promote firm innovation? A tale of two emerging economies. Organization Science 17 (5) : 637-656. ScholarBank@NUS Repository.
Abstract: Using a comparative institutional perspective, we explore whether business groups' roles in facilitating affiliate firms' innovation varies by country and time period. We compare the innovativeness of firms affiliated with business groups to that of independent firms in two emerging economies: South Korea and Taiwan. On average, business group affiliates outperform independent firms in South Korea, but not in Taiwan, and in the early 1990s, but not in the late 1990s. The existence of alternative institutional infrastructures for innovation might explain these differences. Groups' abilities to share technological knowledge and financial resources among affiliates enables them to create value by promoting innovation in emerging economies, but groups' diversification might inhibit individual affiliates' innovativeness. © 2006 INFORMS.
Source Title: Organization Science
ISSN: 10477039
DOI: 10.1287/orsc.1060.0202
Appears in Collections:Staff Publications

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