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Asia Pacific Journal of Management
Published in: Asia Pacific Journal of Management 3/2017

03-06-2017

Business group affiliation as institutional linkages in China’s emerging economy: A focus on organizational traits and institutional conditions

Authors: Xufei Ma, Jane Wenzhen Lu

Published in: Asia Pacific Journal of Management | Issue 3/2017

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Abstract

We conceptualize business group affiliation as institutional linkages by integrating the resource-based view and institutional perspective to examine its direct and moderating effects on firm value in emerging economies. In a sample of 1233 Chinese listed companies, we find that while business group affiliation has mixed direct effects, it moderates the effects of organizational traits and institutional conditions on firm value. Specifically, group affiliation aggravates old firms’ “liability of oldness,” but helps mitigate large firms’ “liability of bigness.” Besides, business group affiliation can reduce the liabilities that institutional voids bring about, as evidenced in its moderating effects on the relationship between regional under-development/industrial restriction and firm value. Our findings point to the moderating effects of business group affiliation in emerging economies.
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Metadata
Title
Business group affiliation as institutional linkages in China’s emerging economy: A focus on organizational traits and institutional conditions
Authors
Xufei Ma
Jane Wenzhen Lu
Publication date
03-06-2017
Publisher
Springer US
Published in
Asia Pacific Journal of Management / Issue 3/2017
Print ISSN: 0217-4561
Electronic ISSN: 1572-9958
DOI
https://doi.org/10.1007/s10490-017-9517-0

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