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date: 05 July 2022

Abstract and Keywords

This article examines the formation and evolution of the one hundred largest business groups in Taiwan from the 1970s to the 2000s. It first provides a brief description of the formation process of business groups in Taiwan. Specifically, it refers to the main arguments related to the emergence of business groups in the literature, market power, state and policy targeting, and persistent social systems. Furthermore, it investigates the strategy and structure of Taiwanese business groups. It develops indicators and studies the trends of product diversification and internationalization of the groups. In terms of group structure, it discusses inter-firm ties among affiliates within the groups and how the diversification strategy and inter-firm ties have co-evolved. The next area of discussion concerns the governance structure of the group. Finally, it considers the competitive capabilities of the group.

Keywords: Taiwanese business groups, product diversification, inter-firm ties, diversification strategy, governance structure

Chi‐Nien Chung

Chi‐Nien Chung is Associate Professor in the Department of Management and Organization at the NUS Business School, National University of Singapore, Singapore. His research interests include strategies and structure of business groups in East Asia, organization theory, economic sociology, networks, and organizations. He has published in such journals as Administrative Science Quarterly, Organization Science, Journal of International Business Studies, Journal of Management Studies,and Organization Studies. He serves on the editorial board of Strategic Management Journal.

Ishtiaq P. Mahmood

Ishtiaq P. Mahmood is Associate Professor at the NUS Business School, National University of Singapore, Singapore. His current research interests include innovation in the context of multi‐business firms and the role of institutional contexts in shaping business strategy. His research appeared in such journals as Academy of Management Journal, Management Science, Academy of Management Review, Research Policy, Organization Science, Industrial and Corporate Change, andJournal of Economic Behavior and Organization. Professor Mahmood won the Haynes Prize from the Academy of International Business for the most prominent scholar in international business under the age of 40.

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