Business group characteristics and affiliated firm innovation: The case of Taiwan

Tsun Jui Hsieh, Ryh Song Yeh, Yu-Ju Chen

Research output: Contribution to journalArticle

46 Citations (Scopus)

Abstract

This paper investigates the relationship between business group factors and affiliated firm innovation in terms of patents granted. We examine the following factors for business groups: group affiliation, group diversification, inside ownership, and family ties. In emerging markets, business groups act not only as an internal capital market, but also as a platform for resource sharing among affiliates. We use Taiwan's business groups as a research sample to investigate how these group factors affect affiliated firms' innovation. The findings indicate that firms that are affiliated with business groups innovate better than their unaffiliated counterparts. Group diversification and family ties have positive effects on firm innovation, while inside ownership has no significant positive effect. Our study contributes to the innovation literature by shedding light on business group factors and firm innovation.

Original languageEnglish
Pages (from-to)560-570
Number of pages11
JournalIndustrial Marketing Management
Volume39
Issue number4
DOIs
Publication statusPublished - 2010 May 1

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All Science Journal Classification (ASJC) codes

  • Marketing

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