“Overcoming Institutional Voids: The Complementary Advantages of Business Groups and Multinationals”: Research Seminar by Prof. Ajai Gaur, Rutgers Business School
Prof. Ajai Gaur, Associate Professor of Strategic Management and International Business at Rutgers Business School, delivered a seminar on the topic titled “Overcoming Institutional Voids: The Complementary Advantages of Business Groups and Multinationals”.
Abstract of the Talk:
Drawing on the literature on multinational corporations (MNCs) and business groups, we argue that the advantages of business groups and MNCs complement each other. More specifically, we examine the role of business group affiliation, inter-affiliate sales and strength of host market institutions on the survival and financial performance of foreign subsidiaries of MNCs. Our empirical findings, based on a sample of 6,017 foreign subsidiaries belonging to 281 MNCs from Korea during 1995 to 2013 provide robust support to our theoretical model. We find that subsidiaries belonging to business groups, as well as those with higher inter-affiliate sales experience superior performance.