Business Groups in Emerging Economies: An Analysis of Our Current Understanding
Ainley, David (2006) Business Groups in Emerging Economies: An Analysis of Our Current Understanding. [Dissertation (University of Nottingham only)] (Unpublished)
Business groups are the dominant organizational form in most emerging economies. They form strong linkages between firms in order to counteract the existence of institutional voids such as the lack of adequate capital and labour markets. Groups essentially exist to reduce transaction costs and risk created by institutional failings by using the internal resources of the collective to form their own markets for resources such as capital and labour. Affiliated firms also benefit from economies of scale and scope which stems from a prolonged drive towards diversification strategies within the early years of group formation. In many economies their power and dominance is unrivalled, being responsible for a considerable percentage of many economies GDP and the engine behind their continued growth.
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