The Nature Of Diversified Business Groups: A Research Design And Two Case Studies
On byDiversified business groupings dominate the private sectors of most of the world’s economies. Several of these economies have undergone unexpected plan changes that increase domestic competitive strength significantly. We demonstrate how the changes in corporate scope that accompany such “competitive shocks” may be used to weigh the importance of different explanations for the existence of diversified business groups. We illustrate our reasoning by studying the restructuring of two of India’s largest business groups following an extensive post‐1991 bundle of plan reforms. The situation studies also elucidate aspects of the restructuring process, which should notify bigger‐sample empirical analyses.
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