Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5109321 | Journal of Business Research | 2018 | 10 Pages |
Abstract
This study examines how emerging economy firms pursue growth in the domestic market during pro-market reforms. Grounding in the literature on institutional perspective on strategic adaptation during institutional transition, we propose an inverted U-shaped relationship between pro-market reforms and firms' pursuit of growth through new investments. However, the effect of pro-market reforms is likely to vary depending on organizational forms and prior logic of competition. More specifically, we propose that business group affiliation has a positive moderating effect, while prior diversification has a negative moderating effect on the relationship between pro-market reforms and corporate expansion through new investments. Our empirical findings based on a sample of 6072 new investment projects undertaken by 3028 companies in India during 1995-2014 provide robust empirical support for the hypothesized relationships.
Keywords
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Business and International Management
Authors
Deeksha Singh, Chinmay Pattnaik, Ajai S. Gaur, Elif Ketencioglu,