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 Group Publishing, Bingley, UK, pp. 87-123. ISBN 9781787142770

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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
Date Deposited:	13 Jul 2017 10:18
Last Modified:	02 Jan 2024 17:48
URI:	http://eprints.lse.ac.uk/id/eprint/83506

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