Abstract
We investigate whether and how affiliation with a business group (BG) affects the success (survival and performance) of newly created ventures compared to standalone counterparts, and how this relationship varies across institutional contexts. Using a cross-country sample of 4.5 millions of firms established between 2000 and 2020, we find that BG affiliation confers significant advantages in emerging markets but it is detrimental in developed economies. Importantly, outcomes depend on the institutional gap between home and host countries: ventures controlled by headquarters with stronger institutional environment exhibit superior performance.