search query: @indexterm DIVERSIFICATION / total: 686
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| Author: | Kock, C. J. Guillen, M. F. |
| Title: | Strategy and structure in developing countries: business groups as an evolutionary response to opportunities for unrelated diversification |
| Journal: | Industrial and Corporate Change
2001 : MAR, VOL. 10:1, p. 77-113 |
| Index terms: | DEVELOPING COUNTRIES DIVERSIFICATION GEARING STRATEGY |
| Freeterms: | BUSINESS GROUPS |
| Language: | eng |
| Abstract: | Business groups are a common type of enterprise in late-developing countries, yet their existence appears to be at odds with extant theory in strategic management. Drawing on Schumpeter, the authors suggest that entrepreneurs in late development build a business group by engaging in a distinct type of innovation. Instead of creating new products they leverage local and foreign contacts to combine foreign technology and local markets. The capability to leverage contacts is broadly applicable to diverse industries, creating incentives for unrelated diversification. |
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