Internationalization and governance of Indian family-owned business groups

Abstract

PurposeThe purpose of this paper is to study the relationship between corporate governance practices and internationalization through foreign direct investments in the context of family-owned business groups in India.Design/methodology/approachThe comparative case study method is used to understand the relationship between corporate governance practices and internationalization using four family-owned business groups in India.FindingsThe ownership concentration negatively influences the internationalization, while transparency has a positive association. Professionalization of management helps in internationalization. Overall, good corporate governance practices have a positive influence on group internationalization.Research limitations/implicationsThis paper provides detailed discussions based on the case study research which would help the future research work on the relationship between corporate governance practices and internationalization.Originality/valueThe existing literature studies in this field in the context of emerging markets are inconclusive. Hence, this paper uses the case study method to understand the relationship better.