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Multinational business groups

Szemeredi, Katalin (2017) Multinational business groups. In: Alcácer, Juan, Kogut, Bruce, Thomas, Catherine and Yin Yeung, Bernard, (eds.) Geography, Location, and Strategy. Advances in Strategic Management. Emerald Publishing Limited, Bingley, UK, pp. 87-123. ISBN 9781787142770

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Identification Number: 10.1108/S0742-332220170000036004

Abstract

This paper provides a primer on European multinational business groups (BGs) and their subsidiaries. Firms in these BGs appear to have higher sales performance than firms in domestic groups (15% higher). This leads us to investigate which elements increase the likelihood that a group will transition towards multinational status. BGs’ characteristics matter for foreign acquisition: groups becoming multinational are usually larger, have a more hierarchical structure with respect to the number of layers in a group, and are more diverse in terms of sectors. Groups tend to expand into bordering countries or countries providing particular advantages, such as a large internal market. The first acquisition is a corporate-level decision that appears to be made by the group’s controlling firm and is often a diversification into a different industry.

Item Type: Book Section
Official URL: http://www.emeraldgrouppublishing.com/
Additional Information: © 2017 Emerald Publishing Limited
Divisions: Management
Subjects: H Social Sciences > HC Economic History and Conditions
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Sets: Departments > Management
Date Deposited: 13 Jul 2017 10:18
Last Modified: 20 Jan 2020 02:37
URI: http://eprints.lse.ac.uk/id/eprint/83506

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