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Purpose: This study aims to demonstrate the importance of organizational networks in organizational performance is relatively rich; less understood are processes in organizational networking that entrepreneurs and organizations use in making sense of rapidly changing contexts for organizational performance. Design/methodology/approach: This study conducts an exploratory organizational-level narrative analysis into firms' experiences in two major emerging markets (EMs), namely, Russia and India – to identify organizational networking processes in the midst of institutional upheavals. The study is based on in-depth case studies of firms in EMs sourced from interview data from senior management and consolidated with secondary data. Findings: The authors find that initially firms rely on informal networks (including blat/svyazi and jaan-pehchaan/jan-pehchan) and later formal (in the form of bureaucratic followed by proprietary) networks to make sense of the changes and uncertainties in turbulent environments. The authors also demonstrate the cyclical nature of strategic sensemaking in the process of developing organizational networks for performance. Originality: The study has a number of theoretical and practical contributions. First, it extends the well-established business networking construct to a more inclusive organizational networking construct. Second, it demonstrates that sensemaking is dependent on interorganizational networking from the outset and throughout the growth of an organization in turbulent markets – from informal to formal bureaucratic and proprietary networks. Finally, this study is unique in documenting the entire process of sensemaking from scanning to performance as well as successfully demonstrating the cyclical nature of sensemaking. [ABSTRACT FROM AUTHOR]

This paper explores the role of political connections in facilitating access to credit for firms in the Indian corporate sector. This study aims to address gaps in the literature by combining theoretical insights with empirical data. Our model proposes that political connections may reduce risk for firms, thereby enhancing their access to credit. Utilizing a unique dataset of S&P BSE 500 companies from 2001 to 2019, we analyze the extent of these connections and their impact on financial leverage and debt-to-asset ratios. Our findings reveal that politically connected firms, defined by their monetary donations to political parties and the inclusion of Members of Parliament on their boards, exhibit significantly higher financial leverage and debt-to-asset ratios than unconnected firms. This implies a lower perceived borrower's risk and an advantageous position in accessing credit, likely a result of their political ties. The implications of our findings extend to the realms of corporate governance, economic policy, and the broader understanding of emerging market dynamics. • Political connections, as part of non-market strategies of firms, may be crucial in accessing credit. • Our theoretical framework highlights role of risk and donation to political party by a firm in accessing credit. • This study constructs a novel dataset of political connections of Indian companies. • Political connections lead to more favorable borrowing-related outcomes of companies such as, financial leverage and debt-assets ratio. • Political connections specific to a particular political party tend to serve companies more (in terms of the aforementioned outcomes), when that particular party is in power. [ABSTRACT FROM AUTHOR]

This article examines the influence of political proximity and cash-holding behavior of Indian firms on firm value and operating performance. Using a robust data set of political donations and connections for listed Indian firms around three general elections in India from 2009 to 2019, we find that firms with political connections show higher performance than their nonconnected peers. We also observe that politically connected Indian firms with higher cash holdings achieve substantially better valuations over time. Our results are robust and consistent after controlling for various factors. The article coincides with the introduction of electoral bonds through an amendment in Finance Bill 2017, which formalized the corporate financing of political parties and will likely strengthen the corporate-political linkages via more substantial donations. Overall, the article introduces political proximity/connection as a new indirect factor influencing firm performance. [ABSTRACT FROM AUTHOR]

Local political connections form an important channel through which elite capture of public welfare programs takes place. However, the levels of connectedness of households with politicians or political executives and how local power hierarchy wields clout differ in degrees and contexts. This aspect—differences in elite capture by varying levels of local political connections—has been under-studied, if not unexplored. We find households connected to local political executives are more likely to obtain a poverty-alleviating public housing program benefit, namely, the erstwhile Indira Awas Yojana (IAY) scheme, than a non-connected household in rural India. Neither connection to a higher-level elected representative (MP/MLA/Zilla Parishad member) nor connection to a local political party official (who is not in any executive power position) nor some party membership of a family person has a significant effect (than local political connections) on IAY provisioning. Understanding how local power hierarchy or elite connections can influence public program targeting has critical policy implications. [ABSTRACT FROM AUTHOR]

Decentralization in India was implemented as a remedy for the ineffectiveness of government schemes in reaching and benefitting the poor and the necessity of involvement and participation of the very citizenry at the grassroots that are most in need of government intervention and support. However, if this participation itself tends to be dominated by the elite, or prone to corruption, and therefore exclusionary, it becomes a case of the remedy being as bad, if not worse than the malaise. It is in light of the above that this paper attempts a two-part analysis of the IHDS-I and II (India Human Development Survey, first and Second Round) data pertaining to Indian Rural Households, wherein the first part, we examine whether their political connections or lack thereof determine the investment in land by these households. Upon finding that this is indeed the case, the second part is devoted to probing into the significance of possible links that may drive such a positive relationship. Our results show that access to financing instruments of investment by a rural household is indeed more probable in the case of a politically connected household vis-à-vis one lacking such connections. [ABSTRACT FROM AUTHOR]

Using a large sample of Indian family firms, we examine the investment behaviour of group-affiliated family firms versus standalone family firms during local state elections. While state elections negatively affect corporate investments, family firms invest more than non-family firms. Therefore, using a difference-in-difference estimation, we find that group-affiliated family firms invest significantly more than standalone family firms. Additionally, we find no evidence of distortive investments by group-affiliated family firms due to political pressure; rather, it appears that the unique structure allows these firms to make value-relevant investments when other firms adopt a conservative approach. Overall, our study improves the understanding of family firm investments during periods of political uncertainty. • We examine investments pattern of family firms during political uncertainty. • Group-affiliated (GA) family firms withstand political uncertainty. • GA family firms invest more than stand-alone family firms during election years. • GA firms appear to make value-relevant investments during elections. • Other family firms adopt a conservation approach during political uncertainty. [ABSTRACT FROM AUTHOR]