Working PapersVishwanthan, Anierudh.,Bang, Nupur Pavan., Ramachandran, Kavil. "Parenting among Business Groups: An Emerging Market’s Perspective"Read Abstract >Close >Emerging markets witness a significant overlap between social communities, families and business activities. This paper attempts to decipher a source of heterogeneity, which is business group affiliation among family firms. This paper details the reasons why business group affiliation is beneficial in an emerging market by employing the concept of parenting to reconcile the potential deficiencies of business group affiliation pointed out by various strategy scholars. We use two proxies to measure the extent of parenting namely, firm leadership by a family member and promoting family’s shareholding in the group affiliate company. The study has been conducted in the Indian economic context using a dataset consisting of 3,728 listed companies. Results show that superior parenting realized by professional firm leadership and higher promoter shareholding leads to superior financial performance among family business group firms.

Working PapersBang, Nupur Pavan.,Vishwanthan, Anierudh., Ramachandran, Kavil. "Evidence on Family Firm Performance and Relevance of Context in an Emerging Economy"Read Abstract >Close >Ownership of firms and their impact on firm performance has been a topic of interest for long. Concentrated ownership of a firm in the hands of a family presents unique opportunities and challenges that may have an impact on the performance of the firm. Multiple studies have arrived at differing conclusions with regards to performance of family firms. Using a unique proprietary database of scientifically classified listed family and non-family firms this paper studies the impact of family ownership, control and management on firm performance through the lens of external and internal context. It thus advances the debate that has so far been skewed towards studies from the developed markets, larger firms and micro analysis. Using accounting and market measures of firm performance, we conduct a time-series cross-sectional comparison of family and non-family firms. Our analyses consistently reveal that family firms performed poorly in comparison to non-family firms in India. We also find that the impact of family does not weaken over time and that family management results in poorer performance. We, therefore, conclude that family ownership, control and management per se are a significant impediment to firm performance in emerging markets contexts like India.

Working PapersBhatnagar, Navneet.,Sharma, Pramodita., Ramachandran, Kavil. "Spirituality and Corporate Philanthropy in Indian Family Firms "Read Abstract >Close >Family firms are known to help local community through philanthropy. Scholars have examined the nature, process, and outcomes of family firm philanthropy. However, the study of heterogeneity in their philanthropy motives across cultural contexts has received inadequate attention. Based on 16 cases of Indian family firms, this paper examines the influence of spirituality on family firm philanthropy. The paper presents a typology of family firm philanthropy by juxtaposing two dimensions: (i) ‘Dharma’ - i.e., the firm’s sense of duty towards society, and (ii) ‘Karma’ - i.e., the degree of family involvement in philanthropy. Four distinct philanthropic engagement profiles are identified.

Working PapersLampel, Joseph.,Bhalla, Ajay., Ramachandran, Kavil. "Guarding the Family Jewels: An Inter Institutional Perspective of Venture Creation in Family Firms"Read Abstract >Close >Despite the importance of family firms as an institution in traditional societies, we know little about the justifying logic for the resource allocation decision for new ventures in family firms. Through an inductive study of thirty-six NVs in eight Indian family firms at different stages of evolution we propose that within family firms, resource allocation to new ventures requires justification fitting the family's economic, expertise, reputation and attachment (EERA) logic. Family logic enables family members acting as NV champions to more openly frame NV opportunities in terms of their personal preferences than non-family managers. When screening NV opportunities, sibling and cousin - consortium family firms are also more likely to compromise on economic criteria and give preference to nurturing family expertise and attachment logic. Family members acting as NV champions are also under lesser constraints to justify NV performance-corporate alignment to secure additional resources at implementation stage

Working PapersLampel, Bhalla, Ajay., Ramachandran, Kavil. "The Family Firm as an Inter-Institutional System:New Venture Creation in Indian Family Firms"Read Abstract >Close >This paper advances the nascent literature on institutional logics by outlining the theory of family firm as an inter-institutional system. We specifically examine justifying family logic for the decision to allocate resources for a new venture in a family firm. Using case studies of thirty-six NVs in eight Indian family firms at different stages of evolution our findings suggest that within family firms, resource allocation to new ventures requires justification fitting the family’s Economic, Expertise, Reputation and Attachment (EERA) logic. We propose that the family EERA logic enables family members acting as NV champions to more openly frame NV opportunities in terms of their personal preferences than non-family managers. When screening these NV opportunities, family firms are also more likely to compromise on economic criteria and give preference to nurturing family expertise and attachment logic. Family members acting as NV champions are also under lesser constraints to justify NV performance-corporate alignment to secure additional resources at implementation stage.

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