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Evolution of Samsung group and its central office: Imperfect market and capacity-building

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  • Philip PilSoo Choi

    (Sejong University)

Abstract

The history of Samsung and its central office shows the influence of exogenous social and economic change on business-group structures and the endogenous development of capacity in a business group. This paper investigates how transaction cost operates in regard to group size and the functions retained or otherwise, centralized or decentralized, by central office. In relation to business-group development, the effectiveness of transaction cost and active capacity-building are examined and weighed. Entrepreneurs reacting to external changes have raised group capabilities and sought to maintain group integrity. The central-office activities of allocation, ratification, nurturing, and sharing are also discussed and conceptualized.

Suggested Citation

  • Philip PilSoo Choi, 2016. "Evolution of Samsung group and its central office: Imperfect market and capacity-building," Asian Business & Management, Palgrave Macmillan, vol. 15(5), pages 370-398, December.
    • Handle: RePEc:pal:abaman:v:15:y:2016:i:5:d:10.1057_s41291-016-0011-1
    DOI: 10.1057/s41291-016-0011-1
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