Business groups are an important component of the overall economic setup in the emerging markets. There are similarities as well as differences in business groups around the world. In the current study, we have tried to compare performance of affiliate firm's vis-à-vis firms that are non-affiliates in the Indian context and have tried to give some managerial insights related to strategy formulation and implementation. We observed that group and standalone firms differ in a host of firm and market specific parameters. More specifically group firms on an average underperform their independent counterparts. The results vary across industries and in some industries group firms over-perform standalone firms. Thus the current work highlights the differential impact of group firms on corporate performance in the Indian context. The current work also highlights the gaps which can be further explored in the said area.
Firm Performance, Emerging Economies, Business Groups
