IDEAS home Printed from https://ideas.repec.org/p/ess/wpaper/id2543.html
   My bibliography  Save this paper

Measuring Institutional Relatedness

Author

Listed:
  • Rakesh Basant
  • Karthik Dhandapani

Abstract

This paper is about measuring empirical relatedness to capture the myriad reasons used by firms to combine various businesses in emerging economies as a response to various institutional voids, without giving undue importance to any specific rationale. In this paper there has been a purport to address this lacuna in research by proposing an empirically implementable measure for institutional relatedness having the features described above. It has also been shown that the empirical estimates for India of our measure of relatedness are in consonance with the tendencies observed by studies using the case-study method and seem to be linked with the institutional transitions that have been observed in recent years.[W.P. No. 2009-05-02]

Suggested Citation

  • Rakesh Basant & Karthik Dhandapani, 2010. "Measuring Institutional Relatedness," Working Papers id:2543, eSocialSciences.
  • Handle: RePEc:ess:wpaper:id:2543
    Note: Institutional Papers
    as

    Download full text from publisher

    File URL: http://www.esocialsciences.org/Download/repecDownload.aspx?fname=Document1962010560.4871027.pdf&fcategory=Articles&AId=2543&fref=repec
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Tarun Khanna & Jan W. Rivkin, 2001. "Estimating the performance effects of business groups in emerging markets," Strategic Management Journal, Wiley Blackwell, vol. 22(1), pages 45-74, January.
    2. Mingfang Li & Kannan Ramaswamy & Barbara Pécherot Petitt, 2006. "Business groups and market failures: A focus on vertical and horizontal strategies," Asia Pacific Journal of Management, Springer, vol. 23(4), pages 439-452, December.
    3. Gaurav Datt & Martin Ravallion, 2002. "Is India's Economic Growth Leaving the Poor Behind?," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 89-108, Summer.
    4. Rachel Davis & L. G. Thomas, 1993. "Direct Estimation of Synergy: A New Approach to the Diversity-Performance Debate," Management Science, INFORMS, vol. 39(11), pages 1334-1346, November.
    5. Lee, Keonbeom & Peng, Mike W. & Lee, Keun, 2008. "From diversification premium to diversification discount during institutional transitions," Journal of World Business, Elsevier, vol. 43(1), pages 47-65, January.
    6. Belén Villalonga, 2004. "Does Diversification Cause the "Diversification Discount"?," Financial Management, Financial Management Association, vol. 33(2), Summer.
    7. David J. Teece & Richard Rumelt & Giovanni Dosi & Sidney Winter, 2000. "Understanding Corporate Coherence: Theory and Evidence," Chapters, in: Innovation, Organization and Economic Dynamics, chapter 9, pages 264-293, Edward Elgar Publishing.
    8. Stefano Valvano & Davide Vannoni, 2003. "Diversification Strategies and Corporate Coherence Evidence from Italian Leading Firms," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 23(1), pages 25-41, August.
    9. Jose Manuel Campa & Simi Kedia, 2002. "Explaining the Diversification Discount," Journal of Finance, American Finance Association, vol. 57(4), pages 1731-1762, August.
    10. Kannan Ramaswamy & Mingfang Li & Barbara S. Pécherot Petitt, 2004. "Who Drives Unrelated Diversification? A Study of Indian Manufacturing Firms," Asia Pacific Journal of Management, Springer, vol. 21(4), pages 403-423, December.
    11. Kock, Carl J & Guillen, Mauro F, 2001. "Strategy and Structure in Developing Countries: Business Groups as an Evolutionary Response to Opportunities for Unrelated Diversification," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 10(1), pages 77-113, March.
    12. Christine Oliver, 1997. "Sustainable competitive advantage: combining institutional and resource‐based views," Strategic Management Journal, Wiley Blackwell, vol. 18(9), pages 697-713, October.
    13. Tarun Khanna & Yishay Yafeh, 2007. "Business Groups in Emerging Markets: Paragons or Parasites?," Journal of Economic Literature, American Economic Association, vol. 45(2), pages 331-372, June.
    14. Ben Kedia & Debmalya Mukherjee & Somnath Lahiri, 2006. "Indian business groups: Evolution and transformation," Asia Pacific Journal of Management, Springer, vol. 23(4), pages 559-577, December.
    15. Pankaj Ghemawat & Tarun Khanna, 1998. "The Nature of Diversified Business Groups: A Research Design and Two Case Studies," Journal of Industrial Economics, Wiley Blackwell, vol. 46(1), pages 35-61, March.
    16. Tarun Khanna & Yishay Yafeh, 2005. "Business Groups and Risk Sharing around the World," The Journal of Business, University of Chicago Press, vol. 78(1), pages 301-340, January.
    17. Lucia Piscitello, 2004. "Corporate diversification, coherence and economic performance," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 13(5), pages 757-787, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Karthik, D. & Basant, Rakesh, 2009. "Measuring Institutional Relatedness," IIMA Working Papers WP2009-05-02, Indian Institute of Management Ahmedabad, Research and Publication Department.
    2. Ramaswamy, Kannan & Purkayastha, Saptarshi & Petitt, Barbara S., 2017. "How do institutional transitions impact the efficacy of related and unrelated diversification strategies used by business groups?," Journal of Business Research, Elsevier, vol. 72(C), pages 1-13.
    3. Xufei Ma & Jane Wenzhen Lu, 2017. "Business group affiliation as institutional linkages in China’s emerging economy: A focus on organizational traits and institutional conditions," Asia Pacific Journal of Management, Springer, vol. 34(3), pages 675-697, September.
    4. Khosa,Amrinder & Ahmed,Kamran & Henry,Darren, 2019. "Ownership Structure, Related Party Transactions, and Firm Valuation," Cambridge Books, Cambridge University Press, number 9781108492195, October.
    5. Carney, Michael & Estrin, Saul & Van Essen, Marc & Shapiro, Daniel, 2017. "Business groups reconsidered: beyond paragons and parasites," LSE Research Online Documents on Economics 87340, London School of Economics and Political Science, LSE Library.
    6. Elif AKBEN SELCUK, 2014. "Corporate Diversification, Group Affiliation and Firm Value: Evidence From Turkey," Journal of BRSA Banking and Financial Markets, Banking Regulation and Supervision Agency, vol. 8(2), pages 151-174.
    7. Sumon Kumar Bhaumik & Saul Estrin & Tomasz Mickiewicz, 2017. "Ownership identity, strategy and performance: Business group affiliates versus independent firms in India," Asia Pacific Journal of Management, Springer, vol. 34(2), pages 281-311, June.
    8. Chinmay Pattnaik & James Chang & Hyun Shin, 2013. "Business groups and corporate transparency in emerging markets: Empirical evidence from India," Asia Pacific Journal of Management, Springer, vol. 30(4), pages 987-1004, December.
    9. Shaleen Gopal & K. S. Manikandan & J. Ramachandran, 2021. "Are There Limits to Diversification in Emerging Economies? Distinguishing between Firm‐Level and Business Group Strategies," Journal of Management Studies, Wiley Blackwell, vol. 58(6), pages 1532-1568, September.
    10. Becker-Ritterspach, Florian & Bruche, Gert, 2012. "Capability creation and internationalization with business group embeddedness – the case of Tata Motors in passenger cars," European Management Journal, Elsevier, vol. 30(3), pages 232-247.
    11. Michael Carney, 2008. "The many futures of Asian business groups," Asia Pacific Journal of Management, Springer, vol. 25(4), pages 595-613, December.
    12. Gama, Marina Amado Bahia & Bandeira-de-Mello, Rodrigo, 2021. "The effect of affiliation structure on the performance of pyramidal business groups," Journal of Business Research, Elsevier, vol. 124(C), pages 24-37.
    13. Bamiatzi, Vassiliki & Cavusgil, Salih Tamer & Jabbour, Liza & Sinkovics, Rudolf R., 2014. "Does business group affiliation help firms achieve superior performance during industrial downturns? An empirical examination," International Business Review, Elsevier, vol. 23(1), pages 195-211.
    14. Chung, Chi-Nien & Mahmood, Ishtiaq & Mitchell, Will, 2009. "Political Connections and Business Strategy: The Impact of Types and Destinations of Political Ties on Business Diversification in Closed and Open Political Economic," CEI Working Paper Series 2008-24, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    15. Villasalero, Manuel, 2017. "A resource-based analysis of realized knowledge relatedness in diversified firms," Journal of Business Research, Elsevier, vol. 71(C), pages 114-124.
    16. María Inés Barbero & Andrea Lluch & Andrea Lluch & Erica Salvaj & María Inés Barbero, 2014. "Corporate Networks and Business Groups in Argentina in the Early 1970s," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 54(2), pages 183-208, July.
    17. Melsa Ararat & Asli M. Colpan & Dirk Matten, 2018. "Business Groups and Corporate Responsibility for the Public Good," Journal of Business Ethics, Springer, vol. 153(4), pages 911-929, December.
    18. Xavier, Wlamir Gonçalves & Bandeira-de-Mello, Rodrigo & Marcon, Rosilene, 2014. "Institutional environment and Business Groups' resilience in Brazil," Journal of Business Research, Elsevier, vol. 67(5), pages 900-907.
    19. Ben Kedia & Debmalya Mukherjee & Somnath Lahiri, 2006. "Indian business groups: Evolution and transformation," Asia Pacific Journal of Management, Springer, vol. 23(4), pages 559-577, December.
    20. Mike Peng & Andrew Delios, 2006. "What determines the scope of the firm over time and around the world? An Asia Pacific perspective," Asia Pacific Journal of Management, Springer, vol. 23(4), pages 385-405, December.

    More about this item

    Keywords

    measuring; empirical; relatedness; capture; myriad; lacuna; implementable; case-study; institutional transitions; observed; recent years;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ess:wpaper:id:2543. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Padma Prakash (email available below). General contact details of provider: http://www.esocialsciences.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.