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Business groups and the boundaries of the firm

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Author Info

  • Giulio Cainelli

    ()
    (Dipartimento per lo Studio delle Società Mediterranee, Università degli Studi di Bari)

  • Donato Iacobucci

    ()
    (Dipartimento di Ingegneria Informatica, Gestionale e dell’Automazione, Università Politecnica delle Marche)

Abstract

This paper aims to show that the business group – i.e. the set of firms under common ownership and control – is the most appropriate unit to study the behavior and organization of firms and define their boundaries. Particular emphasis is given to notions such as unitary direction – i.e. the influence over strategic decisions – and administrative co-ordination which allow owners to exercise supervision and authority over the controlled companies.

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File URL: http://193.205.129.80/repec/cme/wpaper/cmetwp_05_2009.pdf
File Function: First version, 2009
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Bibliographic Info

Paper provided by c.MET-05 - Centro interuniversitario di Economia Applicata alle Politiche per L'industria, lo Sviluppo locale e l'Internazionalizzazione in its series Working Papers with number 0905.

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Length: 28 pages
Date of creation: Nov 2009
Date of revision:
Handle: RePEc:cme:wpaper:0905

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Web page: http://www.cmet.it
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Related research

Keywords: business group; boundary of the firm; unitary direction;

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Cited by:
  1. Isabella Martucci & Anna Maria Costanza Rinaldi, 2012. "The Way Italian Firms Grow: A Case Study from Southern Italy," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 15(43), pages 115-130, March.
  2. Enrico Guzzini & Donato Iacobucci, 2014. "Ownership as R&D incentive in business groups," Small Business Economics, Springer, vol. 43(1), pages 119-135, June.
  3. Enrico Guzzini & Donato Iacobucci, 2012. "Business group affiliation and R&D propensity," Working Papers 1203, c.MET-05 - Centro interuniversitario di Economia Applicata alle Politiche per L'industria, lo Sviluppo locale e l'Internazionalizzazione.

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