A temporal study of diversification, group affiliation and performance among Indian manufacturers

Barbara S. Pécherot Petitt, Kannan Ramaswamy, Mingfang Li

Research output: Chapter in Book/Report/Conference proceedingConference contribution

3 Citations (Scopus)

Abstract

Building on the recent research about the role of business groups in remedying market failures, this paper examined the impact of diversification and group affiliation on firm performance. Set in the Indian context, it compares the influence of diversification, group affiliation and their interaction on firm performance before (1988) and after (1999) the country introduced dramatic market reforms (1991). Results show that in the pre-reform period while group affiliated diversifiers captured performance benefits, performance of unaffiliated diversifiers was negatively impacted. This suggests that the group structure exerted an important moderating effect on the diversification performance relationship. In the post-reform period marked by a decrease in market failures and an enhanced institutional infrastructure, the positive effect of group affiliation was absent. This underscores the central intermediation role that groups play in mitigating market failures is not as valuable in contexts where the incidence of such failure is low.

Original languageEnglish (US)
Title of host publicationAcademy of Management 2005 Annual Meeting: A New Vision of Management in the 21st Century, AOM 2005
StatePublished - 2005
Externally publishedYes
Event65th Annual Meeting of the Academy of Management, AOM 2005 - Honolulu, HI, United States
Duration: Aug 5 2005Aug 10 2005

Other

Other65th Annual Meeting of the Academy of Management, AOM 2005
CountryUnited States
CityHonolulu, HI
Period8/5/058/10/05

Fingerprint

Diversification
Market failure
Firm performance
Intermediation
Market reform
Business groups
Institutional infrastructure
Interaction
Moderating effect

Keywords

  • Diversification
  • Group affiliation
  • Performance

ASJC Scopus subject areas

  • Information Systems and Management

Cite this

Pécherot Petitt, B. S., Ramaswamy, K., & Li, M. (2005). A temporal study of diversification, group affiliation and performance among Indian manufacturers. In Academy of Management 2005 Annual Meeting: A New Vision of Management in the 21st Century, AOM 2005

A temporal study of diversification, group affiliation and performance among Indian manufacturers. / Pécherot Petitt, Barbara S.; Ramaswamy, Kannan; Li, Mingfang.

Academy of Management 2005 Annual Meeting: A New Vision of Management in the 21st Century, AOM 2005. 2005.

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Pécherot Petitt, BS, Ramaswamy, K & Li, M 2005, A temporal study of diversification, group affiliation and performance among Indian manufacturers. in Academy of Management 2005 Annual Meeting: A New Vision of Management in the 21st Century, AOM 2005. 65th Annual Meeting of the Academy of Management, AOM 2005, Honolulu, HI, United States, 8/5/05.
Pécherot Petitt BS, Ramaswamy K, Li M. A temporal study of diversification, group affiliation and performance among Indian manufacturers. In Academy of Management 2005 Annual Meeting: A New Vision of Management in the 21st Century, AOM 2005. 2005
Pécherot Petitt, Barbara S. ; Ramaswamy, Kannan ; Li, Mingfang. / A temporal study of diversification, group affiliation and performance among Indian manufacturers. Academy of Management 2005 Annual Meeting: A New Vision of Management in the 21st Century, AOM 2005. 2005.
@inproceedings{3f63641da85a44c8956d802f69ec345c,
title = "A temporal study of diversification, group affiliation and performance among Indian manufacturers",
abstract = "Building on the recent research about the role of business groups in remedying market failures, this paper examined the impact of diversification and group affiliation on firm performance. Set in the Indian context, it compares the influence of diversification, group affiliation and their interaction on firm performance before (1988) and after (1999) the country introduced dramatic market reforms (1991). Results show that in the pre-reform period while group affiliated diversifiers captured performance benefits, performance of unaffiliated diversifiers was negatively impacted. This suggests that the group structure exerted an important moderating effect on the diversification performance relationship. In the post-reform period marked by a decrease in market failures and an enhanced institutional infrastructure, the positive effect of group affiliation was absent. This underscores the central intermediation role that groups play in mitigating market failures is not as valuable in contexts where the incidence of such failure is low.",
keywords = "Diversification, Group affiliation, Performance",
author = "{P{\'e}cherot Petitt}, {Barbara S.} and Kannan Ramaswamy and Mingfang Li",
year = "2005",
language = "English (US)",
booktitle = "Academy of Management 2005 Annual Meeting: A New Vision of Management in the 21st Century, AOM 2005",

}

TY - GEN

T1 - A temporal study of diversification, group affiliation and performance among Indian manufacturers

AU - Pécherot Petitt, Barbara S.

AU - Ramaswamy, Kannan

AU - Li, Mingfang

PY - 2005

Y1 - 2005

N2 - Building on the recent research about the role of business groups in remedying market failures, this paper examined the impact of diversification and group affiliation on firm performance. Set in the Indian context, it compares the influence of diversification, group affiliation and their interaction on firm performance before (1988) and after (1999) the country introduced dramatic market reforms (1991). Results show that in the pre-reform period while group affiliated diversifiers captured performance benefits, performance of unaffiliated diversifiers was negatively impacted. This suggests that the group structure exerted an important moderating effect on the diversification performance relationship. In the post-reform period marked by a decrease in market failures and an enhanced institutional infrastructure, the positive effect of group affiliation was absent. This underscores the central intermediation role that groups play in mitigating market failures is not as valuable in contexts where the incidence of such failure is low.

AB - Building on the recent research about the role of business groups in remedying market failures, this paper examined the impact of diversification and group affiliation on firm performance. Set in the Indian context, it compares the influence of diversification, group affiliation and their interaction on firm performance before (1988) and after (1999) the country introduced dramatic market reforms (1991). Results show that in the pre-reform period while group affiliated diversifiers captured performance benefits, performance of unaffiliated diversifiers was negatively impacted. This suggests that the group structure exerted an important moderating effect on the diversification performance relationship. In the post-reform period marked by a decrease in market failures and an enhanced institutional infrastructure, the positive effect of group affiliation was absent. This underscores the central intermediation role that groups play in mitigating market failures is not as valuable in contexts where the incidence of such failure is low.

KW - Diversification

KW - Group affiliation

KW - Performance

UR - http://www.scopus.com/inward/record.url?scp=84859049110&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84859049110&partnerID=8YFLogxK

M3 - Conference contribution

AN - SCOPUS:84859049110

BT - Academy of Management 2005 Annual Meeting: A New Vision of Management in the 21st Century, AOM 2005

ER -