Journal article

State capitalism and performance persistence of business group-affiliated firms: A comparative study of China and India

W Hu, L Cui, PS Aulakh

Journal of International Business Studies | Palgrave Macmillan (part of Springer Nature) | Published : 2019


Business groups emerged in developing economies through direct or indirect support from the state in order to overcome a variety of institutional voids and/or to further state objectives of economic growth. However, the efficacy of this organizational form and its associated governance structures have been debated given the dual possibility of business groups to allocate resources among its affiliates for cross-subsidization or winner-picking. We argue that elements of the institutional environment comprising of the state’s approach to organizations and the political context of these interactions vary across countries, thereby influencing business groups’ resource allocation strategies and a..

View full abstract

University of Melbourne Researchers


Awarded by Australian Research Council

Awarded by Social Sciences and Humanities Research Council of Canada

Funding Acknowledgements

All authors contributed equally to this article. We thank the JIBS Editor Mona Makhija, three anonymous reviewers, and participants at the 2013 Academy of International Business Annual Conference and 2013 Academy of Management Annual Conference for their constructive comments. Lin Cui acknowledges funding support from the Australian Research Council (Grant Number DE130100860), and Preet S. Aulakh acknowledges funding from the Social Sciences and Humanities Research Council of Canada (Grant Number 435-2012-1219).