Business groups and the boundaries of the firm
AbstractThis 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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Bibliographic InfoPaper 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.
Length: 28 pages
Date of creation: Nov 2009
Date of revision:
business group; boundary of the firm; unitary direction;
Find related papers by JEL classification:
- L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
- M2 - Business Administration and Business Economics; Marketing; Accounting - - Business Economics
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-11-21 (All new papers)
- NEP-BEC-2009-11-21 (Business Economics)
- NEP-SBM-2009-11-21 (Small Business Management)
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- 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.
- Enrico Guzzini & Donato Iacobucci, 2014. "Ownership as R&D incentive in business groups," Small Business Economics, Springer, vol. 43(1), pages 119-135, June.
- 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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