Corporate group

About: Corporate group is a research topic. Over the lifetime, 1747 publications have been published within this topic receiving 46868 citations.

Do internationalizing business group affiliates perform better after promarket reforms? Evidence from Korean SMEs

Abstract: This study examines how business group affiliation moderates the performance (P) consequences of internationalization (I) by firms from advanced emerging economies that have implemented major promarket reforms. Our theoretical framework integrates institutional and network perspectives with internationalization research to investigate the effects of institutional change on the role of business groups in supporting the internationalization of their affiliates. Using a dataset of 143 publicly listed Korean manufacturing SMEs over a five-year period, our findings provide statistical evidence that business group affiliation has different moderating effects on the I-P relationship according to the degree of internationalization. Specifically, group-affiliated SMEs exhibit a U-shaped I-P relationship while non-affiliated, independent SMEs present an overall downward S-shaped relationship, where group-affiliated SMEs perform better at any level of internationalization. Besides, we also examine the moderating effect of industry characteristics and found that in the case of SMEs in technology-intensive industries, affiliation to a business group enhances firm performance at low and intermediate levels of internationalization. Overall, we conclude that business groups are able to provide benefits to their internationalizing affiliates in an improved institutional context.

Impact of Business Integration on Corporate Restructuring and Performance

Abstract: The impact of business groups (BGs) on the restructuring and business performance of subsidiaries has been an important feature of studies of Russian companies. The characteristic of this impact provides answers to two questions. The first is why BGs formed during the past decade remain an important part of the Russian industry and why their share continues to grow. An effort should be made to explain the emergence of major diversified amalgamations in an unstable institutional environment, which should aggravate an agency problem and cause the group performance to deteriorate. The second question is threefold and involves the following: first, the role that BGs played in Russian corporate restructuring during the past decade; second, whether they contributed to the increase of competitiveness by corporate restructuring or enabled enterprises to survive without profound restructuring; and finally, in the case of the success of BG member enterprises, whether this success was due to enhanced competitiveness of the companies or support from the authorities.

Strategy, capabilities, and business group performance

Abstract: 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.,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.,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.,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.,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.

Encouraging Corporate Charity

Abstract: The tax law governing corporate philanthropy is stuck in an archaic notion of corporate charity that does not necessarily benefit either charities or corporate stakeholders. Four developments in the last few years provoked this reexamination of the Code's awkward dichotomy between business expenses and charitable contributions, and offer new reasons for replacing the charitable contribution deduction for corporations with a business expense deduction: (1) a statutory reduction in the rate of tax on dividends received by individual shareholders, (2) death of the preeminent model of corporate philanthropy - Berkshire-Hathaway's shareholder designation program (3) empirical evidence showing very low effective tax rates paid by corporations, and (4) adoption of final capitalization regulations that significantly weaken the capitalization requirement and no longer pose much of an obstacle to immediate deduction of corporate payments to charities. This seemingly small legal change offers many benefits in today's climate: it would increase the coherence of a corporation's tax treatment, help to minimize the agency costs in corporate philanthropy, and change the way that corporations define their charitable endeavors, encouraging greater overall corporate commitment to charitable and community needs, both within and outside their business operations.

The Assessment of Viewpoint to Core Competence Understanding of Successful Companies in Developing Countries (The Case Study of Turkey)

Abstract: The recent searches have revealed that the enterprises will catch the superior position against their competitors when specialized in line with their skills and focused on their core competencies. The importance of this topic in reaching to success of the enterprises operating in developing countries. Turkey is a country that is continuously monitored and has a great importance in developing countries in terms of both their own enterprises and foreign investors. This is one of the most important reasons that is underlying for the choice of Turkey among developing countries from our research. The aim of this study, from this point forth, has been carried out to determine perspectives on core skills of holdings that are among the largest firms of Turkey. And also how they assess the core skills and to what extent they sees as the exit point of focusing on core competencies especially in times of crisis. Some of these firms depend on a single holding company or business group. For this reason, the interviews have been conducted with holding which these firms are connected, after selection through random sampling between firms which are operating in different sectors. The interviews have been conducted with bosses or senior managers of enterprises on this subject and have been made face to face. The answers that are given to questions on the specified subject, have been subject to content analysis. However the subject that has great significance in theoretical studies, such as basic skills, carries a special significance and a character with the original in terms of reveal how and what results generated in its application. This research shed light on all of enterprises with all these aspects.