Abstract—While business group emerging market firms are gaining prospective research attentions, our understanding of the business group and performance implications in the lens of social network perspective is limited. This research explores the social network perspective of business group and performance. Through empirically testing business group of Indian firms, we argue that there is a positive impact of within business group board directorate interlock on performance. This research provides empirical evidences to articulate social network perspectives prevail in explaining economic sociological view of emerging multinational business groups. We also assert that business group size positively moderate board directorate interlock and performance relationship. An OLS regression analysis with the data of 405 firms comprising 238 group affiliates with total of 4,666 directors, 2,573 directorate interlock of 1,226 validate our argument.

Index Terms—board interlock, business group, business group size, emerging market, social network theory

Cite: PhilSoo Kim and JaeJoon You, "A Study on the Effects of Indian Business Group Interlock and Size on Firm Performance: Evidence from Bombay Stock Exchange 500," Journal of Advanced Management Science, Vol. 1, No. 4, pp. 378-382, December 2013. doi: 10.12720/joams.1.4.378-382