Governance Structure, Innovation and Internationalization: Evidence from India

Journal of International Management, Forthcoming

33 Pages Posted: 15 Mar 2013 Last revised: 21 Apr 2014

See all articles by Deeksha A. Singh

Deeksha A. Singh

Rutgers Business School - Camden; National University of Singapore (NUS)

Ajai Gaur

Rutgers Business School - Newark and New Brunswick

Date Written: March 1, 2013

Abstract

We examine the impact of firm-level governance structure on the innovation and internationalization strategies of emerging market firms. We propose that in the case of emerging market firms, governance is a response to the prevailing institutional environment and affects the innovation and internationalization strategies of firms. Based on a longitudinal sample of 16,337 firm-year observations of Indian listed firms over a nine-year time period from 2001-2009, we find a positive effect of family ownership and group affiliation on R&D intensity and new foreign investments. Institutional ownership also positively affects new foreign investments, but has no effect on R&D intensity. Further, we find that R&D intensity interacts with family ownership, institutional ownership and group affiliation in affecting new foreign investments.

Keywords: Family ownership, Institutional ownership, Business groups, R&D intensity, Internationalization

Suggested Citation

Singh, Deeksha A. and Gaur, Ajai S., Governance Structure, Innovation and Internationalization: Evidence from India (March 1, 2013). Journal of International Management, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2233199

Deeksha A. Singh (Contact Author)

Rutgers Business School - Camden ( email )

227 Penn Street
Camden, NJ 08102
United States

National University of Singapore (NUS) ( email )

1E Kent Ridge Road
NUHS Tower Block Level 7
Singapore, 119228
Singapore

Ajai S. Gaur

Rutgers Business School - Newark and New Brunswick ( email )

Newark, NJ
United States

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