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Article

Asli M. Colpan and Alvaro Cuervo-Cazurra

Business groups are an organizational model in which collections of legally independent firms bounded together with formal and informal ties use collaborative arrangements to enhance their collective welfare. Among the different varieties of business groups, diversified business groups that exhibit unrelated product diversification under central control, and often containing chains of publicly listed firms, are the most-studied type in the management literature. The reason is that they challenge two traditionally held assumptions. First, broad and especially unrelated diversification have a negative impact on performance, and thus business groups should focus on a narrow scope of related businesses. Second, such diversification is only sustainable in emerging economies in which market and institutional underdevelopment are more common and where business groups can provide a solution to such imperfections. However, a historical perspective indicates that diversified business groups are a long-lived organizational model and are present in emerging and advanced economies, illustrating how business groups adapt to different market and institutional settings. This evolutionary approach also highlights the importance of going beyond diversification when studying business groups and redirecting studies toward the evolution of the group structure, their internal administrative mechanisms, and other strategic actions beyond diversification such as internationalization.

Article

In such a complex and well-researched domain as decision support systems (DSS), with a long history of authors making insightful contributions since the 1960’s, it is critical for researchers, especially those less experienced, to have a broad knowledge of the seminal work that has been carried out by prior generations of researchers. This can serve to avoid proposing research questions which have been considered many times before, without having consideration for the answers which have been put forward by previous scholars, thereby reinventing the wheel or “rediscovering” findings about the life of organizations that have been presented long before. The study of human and managerial decision-making is also characterized by considerable depth and seminal research going back to the beginning of the 20th century, across a variety of fields of research including psychology, social psychology, sociology or indeed operations research. Inasmuch as decision-making and decision support are inextricably linked, it is essential for researchers in DSS to be very familiar with both stream of research in their full diversity so they are able to understand both what activity is being supported and how to analyze requirements for developing decision support artefacts. In addition, whilst the area of decision support has sometimes been characterized by technology-based hype, it is critical to recognize that only a clear focus on the thinking and actions of managers can provide decisive directions for research on their decision support needs. In this article, we consider first the characteristics of human cognition, before concentrating on the decision-making needs of managers and the lessons that can be derived for the development of DSS.