Works
- Is group affiliation profitable in emerging markets? An analysis of diversified Indian business groups, The Journal of Finance 55(2), 867 to 891, 2000
- The future of business groups in emerging markets: long-run evidence from Chile, Academy of Management Journal 43(3), 268 to 285, 2000
- Business groups in emerging markets: paragons or parasites?, Journal of Economic Literature 45(2), 331 to 372, 2007
In Organizational Structures
Known for
Business groups in emerging markets
Ideas
Groups fill institutional voids. Where institutions work poorly, diversified groups can benefit their affiliates; the most diversified Indian groups' affiliates outperformed unaffiliated firms. Caveat: One country in one period.
Paragons or parasites. Groups respond to different economic conditions and can be beneficial or harmful. Caveat: A review.
Group benefits that atrophy as institutions develop. With Palepu, he found in Chile from 1988 to 1996 that the benefits of group affiliation not tied to diversification atrophied over time, and that the diversification threshold for a net benefit rose, and conjectured that the evolving institutional context alters groups' value-creating potential, though slowly. Caveat: One country.