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Innovation in Business Group Firms: Influence of Network Diversity

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  • Kerai, Anita
  • Sharma, Sunil

Abstract

Extant research on influence of ownership structure on innovation suggests a positive relationship between business group affiliation and innovation. While it is true that firms affiliated to business groups seem to benefit from availability of internal capital, determinants that influence the process of innovation have not been examined. This Paper aims to study the influence of network diversity on innovation for firms affiliated to a business group. We draw upon literature on resource based and principal-agency literature to study nature of knowledge exploration and exploitation by business group firms. We argue that network diversity impacts nature of innovation by business group firms.

Suggested Citation

  • Kerai, Anita & Sharma, Sunil, 2015. "Innovation in Business Group Firms: Influence of Network Diversity," IIMA Working Papers WP2015-03-26, Indian Institute of Management Ahmedabad, Research and Publication Department.
    • Handle: RePEc:iim:iimawp:13335
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    References listed on IDEAS

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    6. Brian S. Silverman, 1999. "Technological Resources and the Direction of Corporate Diversification: Toward an Integration of the Resource-Based View and Transaction Cost Economics," Management Science, INFORMS, vol. 45(8), pages 1109-1124, August.
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