SpringerLink
Log in

Business Groups from Emerging Markets: New Actors in International Business

  • Chapter
  • First Online:
Growth Frontiers in International Business

Part of the book series: The Academy of International Business ((AIB))

Abstract

This chapter argues that emerging countries have become major contexts for international business (IB) activities in recent decades of global economy. Their unique environment has produced new multinational enterprises (MNEs), specifically organizational forms referred to as Business Groups (BGs), that can compete with developed country MNEs. These resilient firm types reveal new challenges for internationalization theories. Along with the increased importance of institution-based view, BGs offer a potentially new context for the growth of empirical and theoretical studies in IB field. This study tries to understand the main drivers of BGs, especially Turkish BGs, and their pivotal role in the internationalization of emerging country firms.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution

Subscribe and save

Springer+ Basic
EUR 32.99 /Month
  • Get 10 units per month
  • Download Article/Chapter or Ebook
  • 1 Unit = 1 Article or 1 Chapter
  • Cancel anytime
Subscribe now

Buy Now

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 109.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 139.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free ship** worldwide - see info
Hardcover Book
USD 139.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free ship** worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Similar content being viewed by others

References

  • Aharoni, Y. (2014). To understand EMNEs a dynamic IB contingency theory is called for. International Journal of Emerging Markets, 9(3), 377–385.

    Article  Google Scholar 

  • Arnold, D. J., & Quelch, J. A. (1998). New strategies in emerging markets. MIT Sloan Management Review, 40(1), 7–20.

    Google Scholar 

  • Ataay, A. (2012). Türk Aile İşletme Gruplarının Uluslararasılaşma Deneyimleri. 5. Aile İşletmeleri Kongresi (5th Family Businesses Congress), İstanbul, 13–14 Nisan 2012.

    Google Scholar 

  • Banalieva, E. R., Eddleston, K. A., & Zellweger, T. M. (2015). When do family firms have an advantage in transitioning economies? Toward a dynamic institution-based view. Strategic Management Journal, 36(9), 1358–1377.

    Article  Google Scholar 

  • Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of management, 17(1), 99–120.

    Article  Google Scholar 

  • Bonaglia, F., Goldstein, A., & Mathews, J. A. (2007). Accelerated internationalization by emerging markets’ multinationals: The case of the white goods sector. Journal of World Business, 42(4), 369–383.

    Article  Google Scholar 

  • Buğra, A. (1995). Devlet ve Işadamları: State and business in modern Turkey; A comparative study. İstanbul: İletişim Yayınları.

    Google Scholar 

  • Carney, M., Gedajlovic, E. R., Heugens, P. P. M. A. R., Van Essen, M., & Van Oosterhout, J. H. (2011). Business group affiliation, performance, context, and strategy: A meta-analysis. Academy of Management Journal, 54(3), 437–460.

    Article  Google Scholar 

  • Chang, S. J., & Hong, J. (2000). Economic performance of group-affiliated companies in Korea: Intragroup resource sharing and internal business transactions. Academy of Management Journal, 43(3), 429–448.

    Article  Google Scholar 

  • Chari, M. (2013). Business groups and foreign direct investments by develo** country firms: An empirical test in India. Journal of World Business, 48(3), 349–359.

    Article  Google Scholar 

  • Chari, M., & Acikgoz, S. (2016). What drives emerging economy firm acquisitions in tax havens? Journal of Business Research, 69(2), 664–671.

    Article  Google Scholar 

  • Chari, M., & Dixit, J. (2015). Business groups and entrepreneurship in develo** countries after reforms. Journal of Business Research, 68(6), 1359–1366.

    Article  Google Scholar 

  • Chittoor, R., Kale, P., & Puranam, P. (2015). Business groups in develo** capital markets: Towards a complementarity perspective. Strategic Management Journal, 36(9), 1277–1296.

    Article  Google Scholar 

  • Colpan, A. M. (2010). Business groups in Turkey. In A. M. Colpan, T. Hikino, & J. R. Lincoln (Eds.), The Oxford handbook of business groups (pp. 486–525). New York: Oxford University Press.

    Chapter  Google Scholar 

  • Colpan, A. M., & Hikino, T. (2008). Türkiye’nin Büyük Şirketler Kesiminde İşletme Gruplarının İktisadi Rolü ve Çeşitlendirme Stratejileri. Yönetim Araştırmaları Dergisi, 8(1–2), 23–58.

    Google Scholar 

  • Colpan, A. M., Hikino, T., & Lincoln, J. R. (2010). Introduction. In A. M. Colpan, T. Hikino, & J. R. Lincoln (Eds.), The Oxford handbook of business groups (pp. 1–11). New York: Oxford University Press.

    Chapter  Google Scholar 

  • Colpan, A. M., & Jones, G. (2016). Business groups, entrepreneurship and the growth of the Koç Group in Turkey. Business History, 58(1), 69–88.

    Article  Google Scholar 

  • DEIK. (2009). Turkish multinationals joint report. In Istanbul and New York: Foreign Economic Relations Board of Turkey & Vale Columbia Center on Sustainable International Investment & Kadir Has University.

    Google Scholar 

  • DEIK. (2011). Turkish multinationals steady on their course despite crisis. In İstanbul and New York: Foreign Economic Relations Board of Turkey & Vale Columbia Center on Sustainable International Investment & Kadir Has University.

    Google Scholar 

  • DEIK. (2014). Despite stronger US dollar Turkish OFDI continues to grow. In İstanbul and New York: Foreign Economic Relations Board of Turkey & Vale Columbia Center on Sustainable International Investment & Kadir Has University.

    Google Scholar 

  • Demirbag, M., Glaister, K. W., & Tatoglu, E. (2007). Institutional and transaction cost influences on MNEs’ ownership strategies of their affiliates: Evidence from an emerging market. Journal of World Business, 42(4), 418–434.

    Article  Google Scholar 

  • Dirlik, S. (2014). Türkiye’de Egemen İktisadi Aktörler Olarak İşletme Grupları (Business Groups as a Dominant Economic Actors in Turkey). Finans Politik & Ekonomik Yorumlar, 51(594), 9–36.

    Google Scholar 

  • Dirlik, S., & Asunakutlu, T. (2014). Türkiye’deki İşletme Gruplarının Uluslararasılaşması: Kaynak Esaslı Yaklaşım. In 22. Ulusal Yönetim ve Organizasyon Kongresi Kitabı (pp. 498–508). Konya: Aybil Yayınları.

    Google Scholar 

  • Dunning, J. H. (1988). The eclectic paradigm of international production: A restatement and some possible extensions. Journal of International Business Studies, 19(1), 1–31.

    Article  Google Scholar 

  • Dunning, J. H. (1998). Location and the multinational enterprise: A neglected factor? Journal of International Business Studies, 29(1), 45–66.

    Article  Google Scholar 

  • Dunning, J. H., & Lundan, S. M. (2008). Institutions and the OLI paradigm of the multinational enterprise. Asia Pacific Journal of Management, 25(4), 573–593.

    Article  Google Scholar 

  • Erdilek, A. (2008). Internationalization of Turkish MNEs. Journal of Management Development, 27(7), 744–760.

    Article  Google Scholar 

  • Gammeltoft, P., Pradhan, J. P., & Goldstein, A. (2010). Emerging multinationals: Home and host country determinants and outcomes. International Journal of Emerging Markets, 5(3–4), 254–265.

    Article  Google Scholar 

  • Gaur, A., & Delios, A. (2015). International diversification of emerging market firms: The role of ownership structure and group affiliation. Management International Review, 55(2), 235–253.

    Article  Google Scholar 

  • Ghemawat, P., & Khanna, T. (1998). The nature of diversified business groups: A research design and two case studies. The Journal of Industrial Economics, 46(1), 35–61.

    Article  Google Scholar 

  • Gökşen, N. S., & Üsdiken, B. (2001). Uniformity and diversity in Turkish business groups: Effects of scale and time of founding. British Journal of Management, 12(4), 325–340.

    Article  Google Scholar 

  • Granovetter, M. (2010). Business groups and social organization. In N. J. Smester & R. Swedberg (Eds.), The handbook of economic sociology (pp. 429–450). Princeton, NJ and Oxford: Princeton University Press.

    Google Scholar 

  • Gubbi, S. R., Aulakh, P. S., & Ray, S. (2015). International search behavior of business group affiliated firms: Scope of institutional changes and intragroup heterogeneity. Organization Science, 26(5), 1485–1501.

    Article  Google Scholar 

  • Guillen, M. F. (2000). Business groups in emerging economies: A resource-based view. Academy of Management Journal, 43(3), 362–380.

    Article  Google Scholar 

  • He, J., Mao, X., Rui, O. M., & Zha, X. (2013). Business groups in China. Journal of Corporate Finance, 22, 166–192.

    Article  Google Scholar 

  • Hitt, M. A., Tina Dacin, M., Levitas, E., Arregle, J.-L., & Borza, A. (2000). Partner selection in emerging and developed market contexts: Resource-based and organizational learning perspectives. Academy of Management Journal, 43(3), 449–467.

    Article  Google Scholar 

  • Holtbrügge, D., & Kreppel, H. (2012). Determinants of outward foreign direct investment from BRIC countries: An explorative study. International Journal of Emerging Markets, 7(1), 4–30.

    Article  Google Scholar 

  • Johanson, M., & Martín, O. M. (2015). The incremental expansion of born internationals: A comparison of new and old born internationals. International Business Review, 24(3), 476–496.

    Article  Google Scholar 

  • Johanson, J., & Wiedersheim-Paul, F. (1975). The internationalization of the firm—Four swedish cases. Journal of Management Studies, 12(3), 305–323.

    Google Scholar 

  • Keister, L. A. (1998). Engineering growth: Business group structure and firm performance in China’s transition economy. American Journal of Sociology, 104(2), 404–440.

    Article  Google Scholar 

  • Khanna, T., & Palepu, K. (2000). The future of business groups in emerging markets: Long-run evidence from Chile. Academy of Management Journal, 43(3), 268–285.

    Article  Google Scholar 

  • Khanna, T., & Rivkin, J. W. (2001). Estimating the performance effects of business groups in emerging markets. Strategic Management Journal, 22(1), 45–74.

    Article  Google Scholar 

  • Khanna, T., & Yafeh, Y. (2007). Business groups in emerging markets: Paragons or parasites? Journal of Economic Literature, 45(2), 331–372.

    Article  Google Scholar 

  • Khanna, T., & Yafeh, Y. (2010). Business groups in emerging markets: Paragons or parasites? In A. M. Colpan, T. Hikino, & J. R. Lincoln (Eds.), The Oxford Handbook of Business Groups (pp. 575–601). New York, US: Oxford University Press.

    Google Scholar 

  • Kim, D., Kandemir, D., & Cavusgil, S. T. (2004). The role of family conglomerates in emerging markets: What western companies should know. Thunderbird International Business Review, 46(1), 13–38.

    Article  Google Scholar 

  • Kim, H., Kim, H., & Hoskisson, R. E. (2010). Does market-oriented institutional change in an emerging economy make business-group-affiliated multinationals perform better? An institution-based view. Journal of International Business Studies, 41(7), 1141–1160.

    Article  Google Scholar 

  • Leff, N. H. (1978). Industrial organization and entrepreneurship in the develo** countries: The economic groups. Economic Development and Cultural Change, 26(4), 661–675.

    Article  Google Scholar 

  • Luo, Y., & Tung, R. L. (2007). International expansion of emerging market enterprises: A springboard perspective. Journal of International Business Studies, 38(4), 481–498.

    Article  Google Scholar 

  • Luo, Y., Xue, Q., & Han, B. (2010). How emerging market governments promote outward FDI: Experience from China. Journal of World Business, 45(1), 68–79.

    Article  Google Scholar 

  • Ma, X., Yao, X., & **, Y. (2006). Business group affiliation and firm performance in a transition economy: A focus on ownership voids. Asia Pacific Journal of Management, 23(4), 467–483.

    Article  Google Scholar 

  • Mathews, J. A. (2006). Dragon multinationals: New players in 21st century globalization. Asia Pacific Journal of Management, 23(1), 5–27.

    Article  Google Scholar 

  • Özcan, G. B., & Turunç, H. (2011). Economic liberalization and class dynamics in Turkey: New business groups and Islamic mobilization. Insight Turkey, 13(3), 63–86.

    Google Scholar 

  • Özkara, B., Kurt, M., & Karayormuk, K. (2008). Türkiye’de İşletme Grupları: Eskiler ve Yeniler. Yönetim Araştırmaları Dergisi, 8(1–2), 59–83.

    Google Scholar 

  • Peng, M. W. (2012). The global strategy of emerging multinationals from China. Global Strategy Journal, 2(2), 97–107.

    Article  Google Scholar 

  • Ramamurti, R. (2009). Why study emerging-market multinationals? In R. Ramamurti & J. V. Singh (Eds.), Emerging multinationals in emerging markets (pp. 3–22). New York: Cambridge University Press.

    Chapter  Google Scholar 

  • Ramamurti, R. (2012a). Competing with emerging market multinationals. Business Horizons, 55(3), 241–249.

    Article  Google Scholar 

  • Ramamurti, R. (2012b). What is really different about emerging market multinationals? Global Strategy Journal, 2(1), 41–47.

    Article  Google Scholar 

  • Rugman, A. M. (2006). Multinationals and the new theory of internalization. In Inside the Multinationals 25th Anniversary Edition (1–17). New York: Palgrave Macmillian.

    Google Scholar 

  • Schneider, B. R. (2010). Business groups and the state: The politics of expansion, restructuring, and collapse. In A. M. Colpan, T. Hikino, & J. R. Lincoln (Eds.), The Oxford handbook of business groups (pp. 650–668). New York: Oxford University Press.

    Google Scholar 

  • Selekler-Göksen, N., & Yildirim-Öktem, Ö. (2008). The impact of board characteristics on the internationalization of business group affiliates. Bogazici Journal of Economics and Administrative Sciences, 22(1–2), 53–71.

    Google Scholar 

  • Sim, A. B., & Pandian, J. R. (2003). Emerging Asian MNEs and their internationalization strategies—Case study evidence on Taiwanese and Singaporean firms. Asia Pacific Journal of Management, 20(1), 27–50.

    Article  Google Scholar 

  • Singh, D. A., & Gaur, A. S. (2009). Business group affiliation, firm governance, and firm performance: Evidence from China and India. Corporate Governance: An International Review, 17(4), 411–425.

    Article  Google Scholar 

  • Singla, C., & George, R. (2013). Internationalization and performance: A contextual analysis of Indian firms. Journal of Business Research, 66(12), 2500–2506.

    Article  Google Scholar 

  • Stal, E., & Cuervo-Cazurra, A. (2011). The investment development path and FDI from develo** countries: The role of pro-market reforms and institutional voids. Latin American Business Review, 12(3), 209–231.

    Article  Google Scholar 

  • Sutherland, D. (2009). Do China’s “national team” business groups undertake strategic-asset-seeking OFDI? Chinese Management Studies, 3(1), 11–24.

    Article  Google Scholar 

  • Whitley, R. (1998). Internationalization and varieties of capitalism: The limited effects of cross-national coordination of economic activities on the nature of business systems. Review of International Political Economy, 5(3), 445–481.

    Article  Google Scholar 

  • Xavier, W. G., Bandeira-de-Mello, R., & Marcon, R. (2014). Institutional environment and business groups’ resilience in Brazil. Journal of Business Research, 67(5), 900–907.

    Article  Google Scholar 

  • Yaprak, A., & Karademir, B. (2010). The internationalization of emerging market business groups: An integrated literature review. International Marketing Review, 27(2), 245–262.

    Article  Google Scholar 

  • Yaprak, A., & Karademir, B. (2011). Emerging market multinationals’ role in facilitating developed country multinationals’ regional expansion: A critical review of the literature and Turkish MNC examples. Journal of World Business, 46(4), 438–446.

    Article  Google Scholar 

  • Yaprak, A., Karademir, B., & Osborn, R. N. (2006). How do business groups function and evolve in emerging markets? The case of Turkish business groups. Advances in International Marketing, 17, 275–294.

    Article  Google Scholar 

  • Yiu, D. W. (2011). Multinational advantages of Chinese business groups: A theoretical exploration. Management and Organization Review, 7(2), 249–277.

    Article  Google Scholar 

  • Yiu, D., Bruton, G. D., & Lu, Y. (2005). Understanding business group performance in an emerging economy: Acquiring resources and capabilities in order to prosper. Journal of Management Studies, 42(1), 183–206.

    Article  Google Scholar 

  • Yiu, D. W., Lu, Y., Bruton, G. D., & Hoskisson, R. E. (2007). Business groups: An integrated model to focus future research. Journal of Management Studies, 44(8), 1551–1579.

    Article  Google Scholar 

  • Yiu, D. W., Ng, F. W., & Ma, X. (2013). Business group attributes and internationalization strategy in China. Asian Business & Management, 12(1), 14–36.

    Article  Google Scholar 

  • Zaheer, S. (1995). Overcoming the liability of foreignness. Academy of Management Journal, 38(2), 341–363.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Faculty of Political Sciences, İstanbul Medeniyet University, İstanbul, Turkey

    Ayse Coban

Authors
  1. Ayse Coban
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Editors and Affiliations

  1. Department of Management Birkbeck, University of London, London, United Kingdom

    Kevin Ibeh

  2. Department of Management Birkbeck, University of London, London, United Kingdom

    Paz Estrella Tolentino

  3. Department of Management Birkbeck, University of London, London, United Kingdom

    Odile E. M. Janne

  4. Department of Management Birkbeck, University of London, London, United Kingdom

    **aming Liu

Rights and permissions

Reprints and permissions

Copyright information

© 2017 The Author(s)

About this chapter

Cite this chapter

Coban, A. (2017). Business Groups from Emerging Markets: New Actors in International Business. In: Ibeh, K., Tolentino, P., Janne, O., Liu, X. (eds) Growth Frontiers in International Business. The Academy of International Business. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-48851-6_6

Download citation

Publish with us

Policies and ethics

Search

Navigation