Download or read book Business Group Affiliation and Innovation in Medium and High-Technology Industries in India written by Surenderrao Komera and published by . This book was released on 2016 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: A distinct feature of many of the economies is the presence of business group (BG) firms. These group affiliated firms are known by various names such as Keiretsu in Japan, Chaebol in Korea, Jituanqiye in Taiwan, grupos economics in Latin America, business houses in India. Even though there are definitional variations, and these are legal entities, Khanna and Rivkin (2001) define business groups firms as a set of firms which, 'though legally independent, are bound together by a constellation of formal and informal ties, and are accustomed to taking coordinated action'. They act like a network and there is evidence that considerable resource sharing among affiliates is widely prevalent (Hsieh et al. 2010). Such groups are considered as a way of ameliorating the financing constraints of the affiliates through the creation of internal capital market. An interesting question emerging from the working of internal capital market is whether the group affiliation hinders or promotes innovative activities.