scholarly journals The Competitiveness of Business Groups and Their Affiliates in International Operations

2016 ◽  
Vol 8 (1) ◽  
pp. 251-262
Author(s):  
Roderick Caballero Bugador
Keyword(s):  
Emerging Economies ◽  
Critical Review ◽  
Business Groups ◽  
Business Group ◽  
Emerging Economy ◽  
Theoretical Background ◽  
International Expansion ◽  
Vast Literature ◽  
International Operations ◽  
Managerial Capabilities

AbstractThe discourse on the competitiveness of emerging economy firms continues with globalization. This paper joins the dialogue by providing a framework of the competitiveness of business groups and their affiliates in international operations. The goal is to address the vast literature on emerging economies that remains short in providing the theoretical background on the competitiveness of emerging and transitioning economy firms. To do this, this study used a critical review and analysis of the literature. It offers some propositions to illustrate the applicability of the framework in analyzing the international expansion of business group affiliates across borders. Ultimately, the paper contributes to the literature on managerial capabilities and competitiveness of firms to sustain their operations as the new emerging economy multinationals.

Founder-key leaders, group-level decision teams, and the international expansion of business groups

2014 ◽  
Vol 31 (2) ◽  
pp. 129-154 ◽  
Author(s):  
Wen-Ting Lin
Keyword(s):  
Fixed Effects ◽  
Business Groups ◽  
Adjustment Costs ◽  
Business Group ◽  
Foreign Direct Investments ◽  
Group Level ◽  
International Expansion ◽  
Dynamic Adjustment ◽  
Content Type ◽  
Top Managers

Purpose – The purpose of this paper is to draw the perspective of dynamic adjustment costs, the author developed hypotheses regarding the relationships between the internationalization of business groups and first, key leaders of business groups who helped found the groups (i.e. founder-key leaders); second, business groups’ group-level decision teams where the majority of positions are held by members of the founding family (i.e. family-dominated decision teams); and third, business groups’ group-level decision teams where strong ties exist among these teams (i.e. strong-tie decision teams) because group-level top managers are simultaneously top managers of group affiliates. Design/methodology/approach – This study used generalized least squares fixed-effects models to test its arguments about longitudinal data pertaining to 173 Taiwanese business groups’ foreign direct investments over a period of five years (2004-2008). Findings – The results show that the presence of a founder-key leader and strong-tie group-level decision teams in a business group can positively affect the internationalization of business groups. However, family-dominated group-level decision teams in a business group can adversely affect the internationalization of business groups. Research limitations/implications – Using a dynamic managerial-capacities perspective, this study provides alternative explanations regarding the degree of business groups’ internationalization to demonstrate the links among business groups’ key leaders, group-level decision teams, and internationalization. Practical implications – When deciding whether to expand abroad, managers at a given business group should carefully consider the characteristics of the group's management team because business groups engaging in such expansion are likely to incur dynamic adjustment costs. In this case, the dynamic managerial capacities of a business group play an important role in enabling the group to decrease dynamic adjustment costs. The differences among a group-level key leader's traits, a family-dominated group-level decision team's traits, and a strong-tie group-level decision team's traits will lead to distinct levels of dynamic managerial capacities within the group. Originality/value – Given the increasing number of business groups entering international markets, this paper rests on the perspective of dynamic managerial capabilities and uses group-level evidence to clarify how the characteristics of key leaders and the characteristics of group-level decision teams in business groups affect the groups’ international expansion.

scholarly journals Does Knowledge from Home Markets Boost Outward Foreign Direct Investments of Emerging Economy Multinationals? Evidence from Indian Family EMNEs

2020 ◽  
Vol 23 (2) ◽  
pp. 211-240
Author(s):  
Arindam Mondal ◽  
Sarada Devi Gadepalli
Keyword(s):  
Emerging Economies ◽  
Family Firms ◽  
Stock Exchange ◽  
Emerging Economy ◽  
Supporting Evidence ◽  
Foreign Direct Investments ◽  
International Expansion ◽  
Domestic Markets ◽  
Theoretical Predictions ◽  
Longitudinal Dataset

Despite increasing research on multinationals from emerging economies (EMNEs), our understanding of the antecedents of their international expansion is still limited. In this study, we seek to examine whether knowledge gained from operating in their complex and diverse domestic markets deter or aid the outward foreign direct investments of EMNEs. As family firms are dominant in emerging economies, we further explore how heterogeneity within family firms moderate this relationship. We conduct our investigations using a proprietary longitudinal dataset comprising 213 EMNEs from India featuring in the S&P Bombay Stock Exchange (BSE) 500 index covering a six-year period from 2007-08 to 2012-13, of which 175 were family EMNEs and find supporting evidence for our theoretical predictions.

Australia

2018 ◽  
Author(s):  
Simon Ville
Keyword(s):  
Twentieth Century ◽  
Multinational Corporations ◽  
Business Model ◽  
Capital Markets ◽  
Business Groups ◽  
Business Group ◽  
Modern History ◽  
Resource Base ◽  
Australian Economy ◽  
Diversified Portfolio

Business groups have been limited in number and influence for most of Australia’s modern history. Several entrepreneurs managed a diversified portfolio of interests, and business families often cooperated with one another, but this rarely took the form of a business group. When the Australian economy diversified into manufacturing from its initial narrow resource base, multinational corporations formed a dominant presence. Governments built infrastructure but did not facilitate groups. Maturing capital markets negated the need for in-house treasuries. Business groups temporarily dominated the corporate landscape for several decades towards the end of the twentieth century, but their business model was flawed in relation to the Australian environment and most failed to survive the downturn of the late 1980s and early 1990s.

Diversified Business Groups and Corporate Refocusing in Emerging Economies

2005 ◽  
Vol 31 (6) ◽  
pp. 941-965 ◽  
Author(s):  
Robert E. Hoskisson ◽  
Richard A. Johnson ◽  
Laszlo Tihanyi ◽  
Robert E. White
Keyword(s):  
Emerging Economies ◽  
Business Groups

scholarly journals Dividend Policy Decisions in India: Standalone Versus Business Group-Affiliated Firms

2018 ◽  
Vol 20 (1) ◽  
pp. 133-150 ◽  
Author(s):  
Nishant B. Labhane
Keyword(s):  
Dividend Policy ◽  
Stock Exchange ◽  
Business Groups ◽  
Business Group ◽  
Business Risk ◽  
Policy Decisions ◽  
Financial Leverage ◽  
Dividend Payout ◽  
Investment Opportunities ◽  
High Investment

This study examines the determinants of two important dividend policy decisions specifically the dividend payment decision and the dividend payout level decision of 781 sample Indian firms enlisted on National Stock Exchange (NSE) over the period, 1995–2015, comparing the business group-affiliated firms with the standalone firms. In term of characteristics, the business group-affiliated firms are larger, more profitable and more levered than the standalone firms. The empirical results suggest that the dividend policy decisions of business group-affiliated firms differ significantly from that of the standalone firms. In the case of standalone firms, the firms with high investment opportunities, high financial leverage and high business risk are less likely to pay dividends, and their dividend payout levels are lower. On the other hand, the firms affiliated with business groups are more likely to pay dividends, and their dividend payout levels are higher even when they have high investment opportunities, high financial leverage and high business risk. Overall, the findings suggest that although the business groups are able to create internal capital markets (ICMs) and shield their member firms from market imperfections, they may suffer from other information asymmetry problems.

scholarly journals Social Entrepreneurial Intention among Business Undergraduates: An Emerging Economy Perspective

2013 ◽  
Vol 15 (3) ◽  
Author(s):  
Ayob Noorseha
Keyword(s):  
Emerging Economies ◽  
Social Entrepreneurship ◽  
Sampling Technique ◽  
Entrepreneurial Intention ◽  
Emerging Economy ◽  
Social Enterprises ◽  
Private Higher Education ◽  
Social Entrepreneurs ◽  
The Social ◽  
Perceived Desirability

Social entrepreneurs are viewed as having the abilities to combat social and economic problems in which government, businesses, and non-profits may not be able to solve the problems alone. Consequently, with the collaboration among these sectors, more social enterprises can be established to create social values and development in a nation, specifically among the emerging economies. Therefore, it is timely to investigate what motivates undergraduates to develop social entrepreneurial intention. Drawing from the entrepreneurial models of Shapero and Sokol (1982) and Kruger and Brazeal (1994), this study aims to examine the social entrepreneurial intention among undergraduates from the perspective of an emerging economy. The proposed conceptual model differs from the existing entrepreneurial intention studies by adding the concepts of empathy and social entrepreneurship exposure as the antecedents to perceived desirability and perceived feasibility of social enterprising start-up, which in turn link to social entrepreneurial intention. Using the quota sampling technique, data were collected from 257 business and economics undergraduates from both public and private higher education institutions in Malaysia. The survey instrument was adapted from prior related studies, for instance, Davis (1983) for empathy; Shapero and Sokol (1982) for social entrepreneurship exposure; Krueger (1993) for perceived desirability and perceived feasibility; and Chen et al. (1998) for social entrepreneurial intention. Partial least squares path modelling was used to analyze the hypothesized relationships in the proposed conceptual framework. It is hoped that the findings of this study will shed light on the existing literature of social entrepreneurship, specifically the social entrepreneurial intention studies from the emerging economies perspective.    

scholarly journals ANALISIS KINERJA PENYULUH TERHADAP PEMBERDAYAAN KELOMPOK USAHA PETERNAKAN SAPI DI DESA TONDEGESAN KECAMATAN KAWANGKOAN KABUPATEN MINAHASA

ZOOTEC ◽  
2019 ◽  
Vol 39 (1) ◽  
pp. 101
Author(s):  
Indah Th.P Sondakh ◽  
J A Malingkas ◽  
J Lainawa ◽  
G D Lenzun
Keyword(s):  
Data Collection ◽  
Sampling Method ◽  
Business Groups ◽  
Business Group ◽  
Extension Agents ◽  
Cattle Breeding ◽  
Productivity Level ◽  
Study Population ◽  
Using Data ◽  
The Village

ABSTRACTANALYSIS OF INSTRUCTOR PERFORMANCE TO EMPOWERING CATTLE BREEDING BUSINESS GROUP AT TONDEGESAN VILLAGE OF KAWANGKOAN DISTRICT. The purpose of this study was to analyze the performance of instructors on empowerment of cattle business groups in Tondegesan Village, Kawangkoan District, Minahasa Regency. This research was carried out by using data miles and huberman analysis which was carried out when the data collection took place in the field. The study population was all members of the serentape business group. The sampling method for farmers is based on indications to assess performance, namely productivity, responsiveness, and responsibility. The results showed that the performance of extension agents was mostly in the successful category. The success of the instructor's performance in the productivity level is in the successful category with a percentage of 93.33%, in the level of responsiveness in the successful category with a percentage of 73.33%, and the level of responsibility in the successful category with a percentage of 93.33%. Based on the research,concluded that the performance of the instructor towards the empowerment of business groups in the village of Tondegesan, Kawangkoan Subdistrict which was measured in terms of productivity, responsiveness and responsibilitysuccessful.Keywords: Performance, Extension, Empowerment

Corporate R&D Investments and Risk

2017 ◽  
pp. 211-231
Author(s):  
Mine Uğurlu
Keyword(s):  
Sustainable Development ◽  
Capital Markets ◽  
Financial Constraints ◽  
Business Groups ◽  
Business Group ◽  
Corporate Diversification ◽  
Subprime Crisis ◽  
Group Affiliation ◽  
Earnings Volatility ◽  
Business Group Affiliation

Corporate R&D Investments,that constitute basis for sustainable development, are influenced by external and firm-specific risks.Evidence shows that firms in Turkey have increased R&D spending during subprime crisis despite its procyclicality in most of the emerging countries.This chapter investigates if business group affiliation or corporate diversification that is predominant in Turkey stimulate R&D investments under risk.It focuses on internal capital markets of business groups or conglomerates that may enhance R&D spending by reducing financial constraints, and likelihood of distress of the affiliated firms.The results reveal that group affiliation and diversification positively affect corporate R&D spending when firm-specific risks rise.These results are significant during the global crisis period.Group-affiliated corporations increase their R&D investments as idiosyncratic risks rise.The diversified conglomerates increase R&D investments when earnings volatility and equity erosion rise.Results indicate that large firms are more inclined to reduce R&D investments under risk.

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