IDEAS home Printed from
   My bibliography  Save this article

Strategy, Structure and Performance of Korean Business Groups: A Transactions Cost Approach


  • Chang, Sea Jin
  • Choi, Unghwan


The authors use the transactions cost approach to analyze the diversification strategy and the resulting structure chosen by Korean business groups to overcome market imperfections prevalent in developing countries. Business groups that have multidivisional struc ture are thought to show superior economic performance because such s tructure reduces transactions costs arising from organizational failure. Also, major Korean business groups have a "relational structure," showing both vertical integration and the characteristics of the conglomerate. The authors modify the model of R. E. Caves and M. Uekusa (1976), used for Japan, to obtain the empirical result tha t group-affiliated firms show superior economic performance. Copyright 1988 by Blackwell Publishing Ltd.

Suggested Citation

  • Chang, Sea Jin & Choi, Unghwan, 1988. "Strategy, Structure and Performance of Korean Business Groups: A Transactions Cost Approach," Journal of Industrial Economics, Wiley Blackwell, vol. 37(2), pages 141-158, December.
  • Handle: RePEc:bla:jindec:v:37:y:1988:i:2:p:141-58

    Download full text from publisher

    File URL:
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See for details.

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jindec:v:37:y:1988:i:2:p:141-58. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.