Entrepreneur subsidiary of business groups from emerging markets: a multi-level perspective

  • Fang-Yi Lo
  • Kun-Huang HuarngEmail author
  • Andrea Rey-Martí


This study examines the effects of firm resources on entrepreneur subsidiaries of business groups. Resource-based theory is the foundation for understanding how resource endowment drives firm growth as well as its effect on entrepreneur subsidiaries’ performance. With the growth strategy of business groups as the focus herein, our empirical research includes multi-level analysis and robustness analysis of the top 300 business groups in Taiwan and their 10,028 entrepreneur subsidiaries. The results from hierarchical linear modeling show that entrepreneur subsidiaries’ resources positively affect their performance. Business groups’ resources and growth strategy also positively impact their performance, thus confirming the multi-level phenomena. This study offers a practical contribution for business groups to have a better understanding of the applicability of a firm’s resources and for entrepreneur subsidiaries to execute a proper growth strategy.


Business groups Emerging markets Entrepreneur subsidiary Performance Multi-level perspective 



The authors thank the financial support of the project “Collaborative Economy, Social Economy and Welfare” (DER2015-65519-C2-1-R), financed by the Ministry of Economy and Competitiveness of the Government of Spain.


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Authors and Affiliations

  1. 1.Feng Chia UniversityTaiwanRepublic of China
  2. 2.National Taipei University of BusinessTaipei CityTaiwan, Republic of China
  3. 3.University of ValenciaValenciaSpain

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