Business groups are sets of firms tied together by a centralized control mechanism, and they represent the most common form of business organization worldwide. Business groups have internal labor and capital markets that help them overcome institutional voids. Despite the abundant literature on...

Abundant research exists on the restructuring operations of large, publicly listed firms. However, little is known about the antecedents of layoffs in small and medium-sized enterprises (SMEs). Building on the stakeholder salience theory and arguments on social proximity, this study posits that...