Business groups, institutions, and firm performance. (5th August 2021)

• Record Type: Journal Article
• Authors: Cainelli, Giulio; Ganau, Roberto; Giunta, Anna
• Is Part Of: Industrial and corporate change. Volume 31:Number 1(2022)
• Page Start: 215
• Page End: 233
• Publication Date: 2021-08-05
• Subjects: Organizational change -- Periodicals; Organizational effectiveness -- Periodicals; Industrial management -- Periodicals; 658.4062
• DOI: 10.1093/icc/dtab046
• Languages: English
• ISSNs: 0960-6491

Abstract

Abstract: The aim of this paper is twofold. First, we analyze whether firms affiliated to national and international business groups outperform independent firms. Second, we investigate whether any potential performance premium associated with national and international business group membership depends on the quality of sub-national, regional institutions. Using data on Italian and Spanish manufacturing firms, we find a short-run growth premium for international business group members—while not for national business group members—with respect to independent firms. We also find that the growth premium associated with international business group membership is detected in low-quality regional institutional environments only.