The postentry performance of business groups’ new venture affiliates

Chien Nan Chen, Chengli Tien*, Bernard Gan

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review


Using resource dependence theory, this study examines the determinants of firm performance among business groups’ new venture affiliates using a sample of 1512 new venture affiliates associated with 104 large-sized business groups in Taiwan. The empirical findings reveal that improved affiliate postentry performance is linked to the relative size of a business group’s new venture affiliate and the level of autonomy inherent in decision-making. Furthermore, when the product market of a new venture affiliate is resource-related to its affiliated business group’s main business, this affiliate may benefit from resource relatedness with an improved return on equity. JEL Classification: M10, M16, M38.

Original languageEnglish
Pages (from-to)325-343
Number of pages19
JournalAustralian Journal of Management
Issue number2
Publication statusPublished - 2019 May 1


  • Business group affiliate
  • new venture
  • postentry performance
  • resource dependence

ASJC Scopus subject areas

  • Business, Management and Accounting(all)


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