Keeping it all in the Family: The Role of Particularistic Relationships in Business Group Performance during Institutional Transition

2005 ◽  
Vol 50 (3) ◽  
pp. 404-439 ◽  
Author(s):  
Xiaowei Luo ◽  
Chi-Nien Chung
Keyword(s):  
Social Relationships ◽  
Group Performance ◽  
Social Ties ◽  
Business Groups ◽  
Family Members ◽  
Business Group ◽  
Personal Contact ◽  
Positive Contribution ◽  
Institutional Transition

We examine the role of particularistic relationships (such as family and prior social ties) in business groups during institutional transition and test how particularistic ties between top leaders affect business group performance in Taiwan, where such ties have been central to the functioning of business groups. We propose that during market-oriented transition, family and prior social ties could improve group performance by providing informal norms that strengthen the intermediation within business groups and that family relationships could reduce strategic restructuring and generate performance benefits. Results of a longitudinal study over 24 years show that market transition enhanced the contribution of family and prior social relationships but not that of common-identity relationships, such as being from the same hometown, which do not involve prior direct personal contact. We also found that during transition, the positive contribution of family members would rise up to a threshold, after which additional family members tended to derail group performance, possibly due to informational disadvantages and a legitimacy discount in the eyes of foreign investors. The study helps to make sense of different predictions about the role of particularistic ties in business group performance and makes an initial attempt at revealing how social structure affects performance. Our findings have implications for research on the value of business groups in institutional transition, interorganizational relationships, and the contingencies of social relationships.

Strategy, capabilities, and business group performance

2020 ◽  
Vol 58 (1) ◽  
pp. 76-97
Author(s):  
Shan-Huei Wang ◽  
Chung-Jen Chen ◽  
Andy Ruey-Shan Guo ◽  
Ya-Hui Lin
Keyword(s):  
Group Performance ◽  
Business Groups ◽  
Business Group ◽  
Organizational Capabilities ◽  
Diversification Strategy ◽  
Content Type ◽  
Endogenous Role ◽  
Industry Diversification ◽  
Two Step Estimation

Purpose The purpose of this paper is to examine the relationships among choice of industry diversification, capabilities and business group performance, as well as to point out the potential concern about endogenous role of industry diversification. Design/methodology/approach Using data from the top 100 business groups in Taiwan from TEJ database. This study uses Heckman’s two-step estimation procedure and contingency model to achieve unbiased results and examine our hypotheses. Findings The results of this study find that if business groups’ marketing or operational capabilities are strong they should adopt a high level of diversification strategy and if business groups’ R&D capability is strong they should adopt a low level one. The results of this study also show that the endogenous problem of industry diversification exists, and needs to be considered. Moreover, our finding confirms the importance of capability–strategy fit, which, in turn, can achieve better performance. Practical implications On average, high industry diversification groups perform better than low industry diversification groups after controlling for endogeneity issues. Business groups can achieve better performance if their strategy choices match the capabilities they encounter. Managers should pay attention to strategy-capability fit issues. Specifically, they should review their organizational capabilities as well as check their strategies within firms. Originality/value This study is one of the first that attempts to explore the endogenous role of diversification strategy choices, and empirical examine strategy-capability fit on business group performance.

“Working the Money”

2020 ◽  
pp. 94-111
Author(s):  
Smoki Musaraj
Keyword(s):  
Social Ties ◽  
Family Members ◽  
Migrant Networks ◽  
Migrant Remittances ◽  
Financial Practices

This chapter looks at the intertwining of financial practices at firms with different forms of social ties. It concentrates on the role of mediators, such as “sekserë” and “të njohur” and the broader mobilization of migrant networks to attract deposits for the firms. The firms deliberately mobilized such social ties by offering incentives for sekserë and “menaxherë” to recruit their family members, neighbors, and friends. The chapter also talks about the transactional pathways of circulation of migrant remittances through the firms that were mediated by social ties of kinship and friendship. It investigates how social ties enabled the ongoing financial activities of the firms and how, in turn, transactions with the firms strengthened or weakened social ties.

scholarly journals The Diversification Strategy and Business Groups’ Performance in Poland

2019 ◽  
Vol 11 (1) ◽  
pp. 23-45
Author(s):  
Wioletta Mierzejewska ◽  
Patryk Dziurski
Keyword(s):  
Group Performance ◽  
Empirical Studies ◽  
Business Groups ◽  
Group Development ◽  
Value Added ◽  
Business Group ◽  
Diversification Strategy ◽  
Diversification Strategies ◽  
Desk Research ◽  
Theory Review

Abstract Objective: The aim of the study is to identify the scope in which business groups in Poland apply the diversification strategy and examine it influence on the performance of a business group. Methodology: The research method is a critical analysis of academic literature as well as documents analysis (desk research). Authors applied also statistical inference. Findings: Conducted research on business groups in Poland showed that business groups in Poland are moderately diversified. The study showed also that the diversification strategy does not differentiate the performance of business groups. Value Added: The paper is a unique summary of the researches about diversification strategy and business group performance. The theory review and empirical studies deepen research on business groups and their strategies. Recommendations: It is recommended for business groups to explore the diversification strategies in the context of performance as implementing it may be crucial for further business group development.

scholarly journals Menstimulasi Para Ibu Anggota Kelompok Pengajian Menjadi Startup

2021 ◽  
Vol 4 (1) ◽  
pp. 38
Author(s):  
Shofia Amin ◽  
Rike Setiawati ◽  
Fitri Widiastuti ◽  
Mulyadi Raf ◽  
Asep Machpudin
Keyword(s):  
Family Income ◽  
Business Groups ◽  
Business Group ◽  
Service Activity ◽  
Group Members

Becoming a startup for mothers who are members of the recitation group is an effort to increase family income. However, if we don't have the courage to start a business, all of our wishes will just become a dream that won't come true. This service activity aims to stimulate courage and change the mindset of the women of the Raudhatul Jannah recitation group, Koto Rendah Village, Siulak District, Kerinci Jambi Regency to develop her potential from being a housewife who has daily gardening activities, becoming a startup by synergizing with her group members. Through the counseling and discussion method, how to start a startup business, determinants of startup success, the role of technology in business and opening access to online-based sales are given to them. The result achieved is the formation of a Joint Business Group (KUBE) which consists of similar business groups and collaborates in running businesses in groups.

Social capital: does it matter in a microfinance contract?

2015 ◽  
Vol 42 (11) ◽  
pp. 1035-1046 ◽  
Author(s):  
Bhawani Singh Rathore
Keyword(s):  
Social Capital ◽  
Group Performance ◽  
Family Members ◽  
Peer Pressure ◽  
Empirical Literature ◽  
Group Lending ◽  
Joint Liability ◽  
Content Type ◽  
Peer Monitoring

Purpose – The purpose of this paper is to evaluate the role of social capital in a microfinance contract. Design/methodology/approach – Systematic review of the theoretical and empirical literature on the role of social capital in microfinance. Findings – The theoretical literature has shown using models of peer selection, peer monitoring and peer pressure that group lending with joint liability overcomes both the informational and enforcement failures present in credit markets for poor. However findings from the empirical literature conclude that social capital should not be taken as a single concept but should be considered in light of its different aspects which may be having different effects on the performance. For example, the trust between the borrowers, cultural and social homogeneity has been found to have more significant affect on repayment performance in contrast to the incentives due to peer pressure. The groups formed by family members and relatives are consistently been reported to have weakening influence on repayment. Practical implications – For a same program the effect of social capital on performance can be different for different geographies and different classification of subjects and thus should be studied before initiating a microfinance program in any social setting. Social implications – The borrowers should be encouraged to form groups with others who are more trustworthy and not with those they are just having an acquaintance with. The borrowers should be encouraged to come to aid of those who are victims of negative externalities. The positive experiences will lead to reciprocity of actions in future. The borrowers should be discouraged to form groups with family members and relatives. Originality/value – It analyzes both theoretical and empirical literature by disentangling different aspects of social capital within groups and their effects on group performance.

scholarly journals Social Tie Heterogeneity and Firms’ Networking Strategy

2018 ◽  
Vol 43 (2) ◽  
pp. 352-359 ◽  
Author(s):  
Josh Wei-Jun Hsueh ◽  
Manuel Gomez-Solorzano
Keyword(s):  
Development Strategy ◽  
Social Ties ◽  
Business Groups ◽  
Business Group ◽  
Network Development ◽  
Developmental Processes ◽  
The Social ◽  
The Family ◽  
Community Ties

The social ties of the owners, directors, and managers of firms have cross-level effects on firms’ network development. Firms can develop affiliations with a business group and connections across business groups. We expand the theoretical focus of Mani and Durand’s examination of the family and community ties of firm leaders and their impact on firms’ business group networks. We discuss the relational content heterogeneity of those ties and the associated logic in developing a firm’s networking strategy. Thus, we suggest alternative developmental processes for a firm’s network development strategy.

Coordination, control, or charade? The role of board interlocks among business group members

2019 ◽  
Vol 57 (10) ◽  
pp. 2630-2652 ◽  
Author(s):  
Fabio Zona ◽  
Brian Keane Boyd ◽  
Katalin Takacs Haynes
Keyword(s):  
Structural Equation ◽  
Resource Dependence ◽  
Business Groups ◽  
Business Group ◽  
Equation Model ◽  
Central Position ◽  
Interlocking Directorates ◽  
Content Type ◽  
Board Interlocks

Purpose How do business groups manage their internal processes? The purpose of this paper is to explore how board interlocks between members serve as control and coordination mechanisms within business groups. The authors propose that centrality of groups’ affiliates in the group network of interlocking directorates is shaped by agency and resource dependence forces. In particular, the authors examine the role of international board ties as a resource and information conduit. Design/methodology/approach This study leverages proprietary information on firm-to-firm transaction ties among all 155 affiliates belonging to a large Italian business group. The authors use network analysis to develop multiple measures of the centrality of each group member, and link these to resource transactions, ownership patterns and geographic distributions. The authors test the hypotheses in a structural equation model using LISREL. Findings The results demonstrate that both resource exchanges and the presence of cross-national relations increase an affiliate’s central position in the group’s network of board ties. In contrast, ownership ties between members were unrelated to affiliate centrality. Originality/value Internal governance mechanisms of business groups are rarely studied. While groups are often portrayed as inefficient or value-destroying, the analysis of proprietary firm data suggests a very different scenario: inter-unit ties are much more supportive of a model of business groups as strategic portfolios, using internal ties to share information and resources.

Social Motives Predict Loneliness During a Developmental Transition

2017 ◽  
Vol 76 (4) ◽  
pp. 145-153 ◽  
Author(s):  
Jana Nikitin ◽  
Alexandra M. Freund
Keyword(s):  
Social Relationships ◽  
Well Being ◽  
Social Avoidance ◽  
Social Approach ◽  
Social Motives ◽  
Developmental Transitions ◽  
Avoidance Motivation ◽  
Negative Effect ◽  
Low Levels

Abstract. Establishing new social relationships is important for mastering developmental transitions in young adulthood. In a 2-year longitudinal study with four measurement occasions (T1: n = 245, T2: n = 96, T3: n = 103, T4: n = 85), we investigated the role of social motives in college students’ mastery of the transition of moving out of the parental home, using loneliness as an indicator of poor adjustment to the transition. Students with strong social approach motivation reported stable and low levels of loneliness. In contrast, students with strong social avoidance motivation reported high levels of loneliness. However, this effect dissipated relatively quickly as most of the young adults adapted to the transition over a period of several weeks. The present study also provides evidence for an interaction between social approach and social avoidance motives: Social approach motives buffered the negative effect on social well-being of social avoidance motives. These results illustrate the importance of social approach and social avoidance motives and their interplay during developmental transitions.

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