Evolution of Samsung group and its central office: Imperfect market and capacity-building. Issue 5 (December 2016)

• Record Type: Journal Article
• Authors: Choi, Philip
• Is Part Of: Asian business & management. Volume 15:Issue 5(2016)
• Page Start: 370
• Page End: 398
• Publication Date: 2016-12
• Subjects: business group -- transaction cost -- resource-based theory -- group capability -- central office; Asia -- Commerce -- Periodicals; Management -- Asia -- Periodicals; 658.0095
• DOI: 10.1057/s41291-016-0011-1
• Languages: English
• ISSNs: 1472-4782

Abstract

Abstract The history of Samsung and its central office shows the influence of exogenous social and economic change on business-group structures and the endogenous development of capacity in a business group. This paper investigates how transaction cost operates in regard to group size and the functions retained or otherwise, centralized or decentralized, by central office. In relation to business-group development, the effectiveness of transaction cost and active capacity-building are examined and weighed. Entrepreneurs reacting to external changes have raised group capabilities and sought to maintain group integrity. The central-office activities of allocation, ratification, nurturing, and sharing are also discussed and conceptualized.