Business group affiliation and firm search behavior in India: responsiveness and focus of attention
Author: Vissa, Balagopal ; Chen, Wei-Ru ; Greve, Henrich R.INSEAD Area: Entrepreneurship and Family EnterpriseIn: Organization Science, vol. 21, no. 3, May/June 2010 Language: EnglishDescription: p. 696-712.Type of document: INSEAD ArticleNote: Please ask us for this itemAbstract: This paper investigates the effects of organizational form on problemistic search. We contrast how Indian firms affiliated with business groups and unaffiliated firms evaluate performance and react by adjusting their internal technology search and external market search. We propose that, compared with unaffiliated firms, business group-affiliated (BG-affiliated) firms are more externally oriented in setting aspiration levels and more likely to respond to low performance in the market domain. We find support for an external orientation of BG-affiliated firms and find that group affiliation determines the responsiveness to performance feedback in different search domains. The findings suggest a need to add considerations of organizational form and governance to the theory of organizational search| Item type | Current location | Call number | Status | Date due | Barcode | Item holds |
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This paper investigates the effects of organizational form on problemistic search. We contrast how Indian firms affiliated with business groups and unaffiliated firms evaluate performance and react by adjusting their internal technology search and external market search. We propose that, compared with unaffiliated firms, business group-affiliated (BG-affiliated) firms are more externally oriented in setting aspiration levels and more likely to respond to low performance in the market domain. We find support for an external orientation of BG-affiliated firms and find that group affiliation determines the responsiveness to performance feedback in different search domains. The findings suggest a need to add considerations of organizational form and governance to the theory of organizational search
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