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Role of Dynamic Political Management Capabilities in Business Groups' Location Decision
Rameshwar Arora,
Published in Elsevier
2017
Pages: 1 - 19
Abstract
The family owned diversified business groups emanating from the emerging economies have been extensively involved in both outward and inward FDI. While motives of OFDI by such groups have been primarily based on asset- and market- seeking intentions, the location choice of their investments can be described as depicting Brownian random motion, at the best. However, the business groups are generally governed by common central unit and among this haphazard location choice behavior as depicted by the peer affiliates we attempt to identify a pattern explaining the decision making at the central level. This paper proposes to examine the impact of dynamic political management capabilities exhibited by business group (BG) affiliated firms on the location/co-location decision, of subsidiaries of the peer affiliates in a single host nation. We undertake case study based approach on two Indian Business Groups and their foreign location operations in one particular host location each, respectively, and examine their location/co-location choice behavior by invoking Olson’s collective action theory and Assets of Foreignness lens.
About the journal
JournalData powered by TypesetSSRN Electronic Journal
PublisherData powered by TypesetElsevier
ISSN1556-5068
Open AccessNo