Purpose Internationalization is an important strategy for the long-term survivability of the firms and is often influenced by the ownership groups along with the family involvement in the management decisions. The purpose of this study is to investigate empirically the outward propensities of various ownership groups such as foreign institutional investors, domestic mutual funds and lending institutions. Design/methodology/approach This paper analyzes the moderating effects of the family’s influence on the relationship between various ownership categories and internationalization, which is measured in terms of foreign investments and export intensity. An analysis of listed non-financial Indian firms recorded during the years 2005–2019, constituting a panel of 43,928 firm-year observations was conducted by using the tobit and probit panel regression models. Findings The results demonstrate that internationalization of the firm is positively impacted by the foreign institutional investors and lending institutions. However, when the family ownership is moderated across the ownership categories, it can be seen that it negatively impacts the lending institutions and positively impacts the foreign institutional investors. In the case of mutual funds, no impact of family ownership in the firm’s foreign investment decisions can be seen. Originality/value As there are limited studies about family ownership influence on the firm’s internationalization decision in the context of India, this paper takes an inclusive approach to the changing nature of the influence of ownership on the international expansion process.
Purpose The preference of firm corporate social responsibility (CSR) spending is shaped by different groups of owners and the institutional environment in which the firm operates. This paper aims to study the heterogeneity among the controlling groups and firms’ internationalization in influencing the CSR decision in emerging economy firms. Design Methodology Approach This paper draws understanding from institutional theory to inspect the propensities of various ownership groups such as lending institutions (LI), domestic mutual funds (MF) and foreign institutional investors (FIIs). The empirical analysis was conducted from a sample of 1,594 unique Bombay stock exchange (BSE)-listed non-financial Indian firms during the 2014–2019 period using Tobit panel regression analysis. Findings The findings reveal that firms’ CSR activities are impacted differently by ownership share of different types of institutional investors after controlling for firm-level resources and capabilities. Lending institutions, FIIs and MF are supportive of CSR investments by firms along with international investments by the firm. Further, the results show that the CSR spend is positively influenced by the business group affiliation of the firm compared to the unaffiliated group of firms. Practical Implications The analysis has implications for both institutional investors and multinational firms. In the merging market context, managers and owners who target long term strategies such as CSR will benefit from increasing shareholdings of creditors (lending institutions). They can also take steps to improve their transparency and corporate governance structure so as to attract foreign institutional investments, thus, in turn, helping the internationalization process of the firm. Originality Value This paper considers the role of the diverseness of the ownership institutional investors along with the moderating effect of business group affiliation of the firm and international investments in impacting the CSR spend. This disparity has not been previously studied with the latest data in an emerging economy context.
Food price fluctuations can impact both producers and consumers. Forecasting the prices of the agricultural commodities is of prime concern not only to the government but also to farmers and agribusiness firms. In developing countries like India, manage
PurposeInnovation strategy and its outcomes may be different for agricultural input firms in developing countries than those operating in developed countries; hence, a study of developing economy should be an important addition to the literature which has earlier focussed mainly on developed countries. Indian firms which were previously catering to domestic demand are now the exporters of major agricultural machinery such as tractors and pesticides.Design/methodology/approachRapid growth in demand for the agricultural inputs and improvement in technology implementations have led us to study the performance and transformation of these input industries. An empirical analysis was performed on the listed agricultural input firms during 2001–2019 to investigate the relationship between the R&D efforts and growth of firms in the seed, pesticide, fertiliser and agricultural machinery industries using the system-generalised methods of moments (GMM) technique on the panel of 1,320 firm-year observations.FindingsThe findings reveal that investments in innovations have a positive and lagged effect on the growth of firms in the Indian agricultural inputs industry. A further analysis reveals that younger firms grow faster when they invest in R&D. More specifically, the author finds evidence in the case of the agricultural inputs industry that import of raw materials negatively affects the firms' growth (FG) and export intensity (EI) positively affects the growth in the case of R&D firms. Investments in R&D are also seen to enable firms to reap benefits from externalities present in the industry.Research limitations/implicationsThis study suggests that the government should encourage the industries to invest optimally in R&D projects by providing favourable fiscal treatments and R&D subsidies which are observed to have positive effects in various developed countries.Originality/valueThere are very few studies that have explored the impact of R&D expenditure on the firm performance in agricultural inputs industry, especially in an emerging economy context like India.
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