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Management International Review

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01.04.2012 | Research Article

Product Diversification and International Expansion of Business Groups

Evidence from India

verfasst von: Assoc. Prof. Vikas Kumar, Assist. Prof. Ajai S. Gaur, Dr. Chinmay Pattnaik

Erschienen in: Management International Review | Ausgabe 2/2012

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Abstract

Does product diversification constrain or boost international expansion of business groups from emerging markets? What is the role of international orientation and group resources in moderating this relationship? Given the dominance of business groups as an organizational form in emerging markets and their recent international expansion, these research questions are pertinent and timely.
We use GLS fixed-effects models to test our arguments using longitudinal data on foreign direct investment of 482 business groups, incorporating 4,038 firms from India over a period of 8 years from 2001–2008.
We find that a high product diversification has an adverse effect on the international expansion of emerging market business groups, and that international orientation and group resources positively moderate this relationship.
Our findings suggest the inherent trade-off that exists between strategies of product diversification and international expansion for emerging market business groups. Those business groups that can effectively employ their learning from prior international exposure and their technical competences are better placed to simultaneously pursue a strategy of product diversification and international expansion.

Vorheriger Artikel EMNEs and Knowledge-seeking FDI

Nächster Artikel Acquisitions by EMNCs in Developed Markets

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Titel: Product Diversification and International Expansion of Business Groups
Evidence from India
verfasst von: Assoc. Prof. Vikas Kumar
Assist. Prof. Ajai S. Gaur
Dr. Chinmay Pattnaik
Publikationsdatum: 01.04.2012
Verlag: SP Gabler Verlag
Erschienen in: Management International Review / Ausgabe 2/2012
Print ISSN: 0938-8249
Elektronische ISSN: 1861-8901
DOI: https://doi.org/10.1007/s11575-012-0133-4

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