BUSINESS GROUP CORPORATE DIVERSIFICATION: EXTENSION OF A TWO-DIMENSIONAL CONCEPTUALIZATION

Yıl 2017, Cilt: 9 Sayı: 1, 92 - 112, 01.02.2017

Bahattin Karademir Konuralp Sezgili

Öz

Studies on unrelatedly diversified business groups in emerging economies have
theoretically addressed the drivers of their diversification. However, the extent
and type of these groups’ corporate diversification has not been adequately
explored. In this paper, we propose an extension of Varadarajan and Ramanujan’s
(1987) two-dimensional conceptualization of firm diversity as a useful tool for
classifying groups across diversification categories: (1) very low diversifiers, (2)
predominantly related diversifiers, (3) predominantly unrelated diversifiers, and
(4) very high diversifiers. To illustrate how business groups may be categorized
into these categories, we use a sample of family-owned business groups in one
emerging market, Turkey. Additionally, we conduct cluster analytic techniques to
refine our findings. Our study validates the appropriateness of using the extended
conceptual framework and proposes combining its application with the cluster
analytic techniques in order to better improve the results. Our work should inspire
new studies on business group corporate diversification.

Anahtar Kelimeler

Business groups, corporate diversification, conceptual framework, measurement, Turkey