New Product Launch by Emerging Market Firms

摘要

This paper explores the drivers of innovative capability of firms in emerging markets. Institutional context of emerging markets renders resource advantages to firms affiliated with business groups. Consequently, as ownership concentration of owners of business groups increases, innovation as measured by new product launched by firms also increases. However, beyond a certain point, increase in the ownership concentration of group members, deteriorates innovative capability of emerging market firms. Furthermore, the group affiliated CEO moderates the impact of ownership concentration on innovation such that with increase in ownership, innovation also increases and beyond a certain point as ownership concentration further increases, business group CEOs regress the impact of ownership on innovation at a faster rate. The study is based on four consumer products sectors of the Indian market namely, consumer electronics, pharmaceuticals, automobiles and fast moving consumer goods, with data collected for six years i.e., from 2010 to 2016.