Journal Article | Organization Science | 21 | May 2010
Business Group Affiliation and Firm Search Behaviour in India: Responsiveness and Focus of Attention
This paper investigates the effects of organizational form on problemistic search. The authors contrast how Indian firms affiliated to business groups and unaffiliated firms evaluate performance and react by adjusting their internal technology search and external market search.The authors propose that, compared with unaffiliated firms, business group firms are more externally oriented in setting aspiration levels and more likely to respond to low performance in the market domain.The authors find support for an external orientation of business group affiliated firms and find that group affiliation determines the responsiveness to performance feedback in different search domains. The findings suggest a need to add considerations of organizational form and governance to the theory of organizational search.