This paper shows that business groups in emerging economies exert dual effects on innovation. While groups facilitate innovation by providing institutional infrastructure, groups also discourage innovation by creating entry barriers for nongroup firms and thereby inhibit the proliferation of new...

This paper argues that business groups in emerging economies exert dual effects on innovation. While groups encourage innovation by providing institutional infrastructures, groups also discourage innovation by creating entry barriers for small and non-group firms and inhibiting the proliferation...

As a closed political economy becomes more open, the types and destinations of political ties that generate strategic benefits for firms change. In closed markets, the greatest benefits arise from formal ties to central political leaders. In more open markets, the benefits shift to informal ties...