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The authors investigate how diversified business groups influence the structural reform–firm strategy relations given its effect on strategic choice and its implementation in a large emerging economy: India. By integrating business group, industrial organization, and international business literature, the authors predict considerable differences in the exporting behavior of business group–affiliated firms on the basis of their market competitiveness and governance dynamics. The authors test their predictions empirically with longitudinal data of 6,119 Indian firms over a 21-year period starting from 1991–1992 to 2011–2012 and find support for most of the hypotheses. These findings suggest that knowledge of the heterogeneity within business groups are essential for understanding the response of business group affiliates in light of the progression of reform process in India. This study thus contributes to a more complete conceptual understanding of the strategic responses of promarket reforms of business group affiliates in emerging economies. [ABSTRACT FROM PUBLISHER]

The discussion with respect to whether there exists a relationship between diversification strategies and a firm's business results has been the subject of abundant analysis in the specialized literature on the subject. The aim of this work is to analyze the theoretical evidence that exists on this relation, by way of an ample revision of the most important studies that have dealt with the question; at the same time emphasizing the most relevant conclusions that have been reached. Lastly, after revising the literature previously mentioned, this study's proposals are presented; as also a chart that synthesizes the different studies that have been made. [ABSTRACT FROM AUTHOR]