Using novel data on European firms, this paper examines the effect of business group affiliation on innovation. We find … that business groups foster the scale and novelty of corporate innovation. Group affiliation is particularly important in … industries that rely more on external finance and have a higher degree of information asymmetry. We also find that the innovation …

more innovation and reform. The theory is illustrated by the organisational differences between China and the former Soviet … compare the performance of organisational forms (M-form and U-form) in implementing changes such as innovation and reform. In …

and others in specialization. Our theory throws light on the nature of hierarchy, the optimal degree of decentralization …