TY - JOUR
T1 - The postentry performance of business groups’ new venture affiliates
AU - Chen, Chien Nan
AU - Tien, Chengli
AU - Gan, Bernard
N1 - Funding Information:
The authors thank the National Science Council in Taiwan (NSC 99-2410-H-259-002) for funding this project.
Funding Information:
The authors thank the National Science Council in Taiwan (NSC 99-2410-H-259-002) for funding this project. The author(s) disclosed receipt of the following financial support for the research, authorship, and/or publication of this article: National Science Council in Taiwan (NSC 99-2410-H-259-002).
Publisher Copyright:
© The Author(s) 2018.
PY - 2019/5/1
Y1 - 2019/5/1
N2 - 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.
AB - 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.
KW - Business group affiliate
KW - new venture
KW - postentry performance
KW - resource dependence
UR - http://www.scopus.com/inward/record.url?scp=85059010279&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85059010279&partnerID=8YFLogxK
U2 - 10.1177/0312896218792965
DO - 10.1177/0312896218792965
M3 - Article
AN - SCOPUS:85059010279
SN - 0312-8962
VL - 44
SP - 325
EP - 343
JO - Australian Journal of Management
JF - Australian Journal of Management
IS - 2
ER -