
Contents
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Function–form efficiency: the Leff hypothesis Function–form efficiency: the Leff hypothesis
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Structural signatures and the emergence of big diversified firms Structural signatures and the emergence of big diversified firms
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The size distribution of firms The size distribution of firms
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The relation of a firm's size and the variance of its growth rate The relation of a firm's size and the variance of its growth rate
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Counting business groups Counting business groups
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Local topologies and comparative analysis Local topologies and comparative analysis
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Business groups and genealogical rules of culture Business groups and genealogical rules of culture
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The state and business groups: linear versus exponential time The state and business groups: linear versus exponential time
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Business groups and the moral economy Business groups and the moral economy
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Implications for the sociology of financial markets Implications for the sociology of financial markets
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Notes Notes
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References References
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6 What is a financial market? Global markets as microinstitutional and post-traditional social forms
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4 Business Groups And Financial Markets As Emergent Phenomena
Get accessBruce Kogut is the Eli Lily Claired Professor of Innovation, Business, and Society at INSEAD. He works in the areas of international competition, strategy and real options, and globalization. Recent articles and projects include: Redesigning the Firm (1996), co-authored with E. Bowman, studies of small worlds in Germany (American Sociological Review, 2001), open source (Oxford Review of Economic Policy), and a forthcoming book on the Global Internet Economy e-mail: [email protected]
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Published:03 June 2013
Cite
Abstract
Business groups are large, consisting of diversified firms that are persistently bound. Seen as isolated phenomena in very distinct institutional environments, their dominance is often inexplicable. This article suggests stepping away from the cross-section and studying the longitudinal bottom-up emergence of business groups, thus coupling statistical models with historical context. It proposes that business groups are a type of signature. The interplay between law-like properties of firm-size distributions and the micro-motives of economic agents lead to the emergence of business groups. An approach that uses baseline models that describe the macro-patterns, such as the presence or absence of power-law distributions, is useful to bounding the number of candidates for micro-behavioural explanations. In the end, the analysis of business groups as emergent may reveal new, if not greater, commonalities across countries than are currently available through comparative institutional analysis.
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