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Cemented conglomerate accumulation is a weak and heterogeneous medium that occurs in western China. It consists mainly of argillaceous cement that loses strength rapidly upon contact with water, leading to collapse instability failure. Its deformation failure mechanism is complex and poorly understood. In this paper, the erosion failure mechanism of cemented conglomerate accumulation is investigated.

The collapse failure process after erosion of the slope foot for typical cemented conglomerate accumulation is studied based on field investigation using the particle discrete element method. And how the medium composition, slope angle and cementation degree influence the failure mode and process of the cemented conglomerate accumulation is examined.

The foot erosion of slope induces a tensile failure that typically manifests as “erosion at the foot of slope – tensile cracking at the back edge of slope top – integral collapse.” The collapse failure is more likely to occur when the cemented conglomerate accumulation has a higher rock content, a steeper slope angle or a weaker cementation degree.

A model based on rigid blocks and disk particles to simulate the cemented conglomerate accumulation is developed. It shows that the hydraulic erosion at the foot of the slope resulted in a different failure mechanism than that of general slopes. The results can inform the stability management, disaster prevention and mitigation of similar slopes.

Presents a considered definition of conglomerates and examines the organizational and marketing problems that have faced these companies. Provides some suggestions for solutions to these problems, noting the significance of individual companies and their relationship with their advertising agencies. Suggests that budget must play a large part in the use of these agencies for marketing to be effective.

The purpose of this paper is to use China’s World Trade Organization accession as a quasi-natural experiment and examine whether conglomeration affects firmss’ ability to respond to a significant increase in competitive pressure. Conglomerate segments have higher sales growth and higher profitability than singlesegment firms, when they face intensified import competition. Conglomerates’ outperformance is not observed when the markets in which segments operate already have high product market competition. Overall, conglomeration encourages competitiveness, and internal resources are allocated to relatively competitive segments.

Avery and Bergsteiner's updated set of 23 sustainable leadership practices derived from sustainable enterprises and five performance outcomes provides a framework to examine the business practices of Thailand's largest conglomerate, Siam Cement Group (SCG). The aim of this paper is to build on and expand Kantabutra and Avery's study based on Avery.

The analysis was conducted by grouping Avery and Bergsteiner's principles into six categories, namely taking a long‐term perspective, investing in people, adapting the organizational culture, being innovative, exhibiting social and environmental responsibility, and behaving ethically. Adopting a multi‐data collection approach, research teams supplemented case study data with non‐participant observations from visits to the conglomerate and its training sessions. Multiple stakeholders were interviewed in semi‐structured interviews. Documentation and information supplied by, or published about, the conglomerate was consulted.

All six sets of practices, which sharply contrast with the prevailing business model of short‐term maximization of profitability but are consistent with the 23 sustainable leadership practices, were found to apply in varying degrees to SCG. A total of 19 applied strongly, with three others moderately strong.

Given that sustainable leadership principles are associated with enhanced brand and reputation, customer and staff satisfaction, and financial performance, the new Sustainable Leadership Grid provides corporate leaders with a useful checklist for this purpose.

This paper reports on the first examination of Avery and Bergsteiner's 23 sustainable leadership elements in a developing economy. It shows that even a publicly‐listed company can resist pressures to conform to business‐as‐usual practices and adopt the long‐term, socially responsible principles of “honeybee” sustainable leadership.

Purpose – We develop a theoretical model to analyze the role that financial conglomerates may play in reducing agency costs in target firms.

Methodology/Approach – We develop a model to analyze the activism of a financial conglomerate (that includes investment banking besides mutual fund management activities) in monitoring the managers of a listed firm. The specific problem we study is this: should the managers of a listed company undertake a new project within the firm or should they develop it outside of the firm with the help of a bank? Should or not the financial conglomerate help the managers undertake the project outside of the existing firm at the expenses of the investors of the mutual fund that it manages, but collecting fees from the investment banking activities?

Findings – It will be attractive to both the financial conglomerate and the managers to develop the project outside of the firm if the fees charged by the financial conglomerate for the provision of investment banking services are within a certain range. However, a more intense reaction to performance from the fund investors will translate to a greater space of converging interests between the conglomerate shareholders and mutual fund investors. Additionally, if fees earned by the mutual fund company are a large source of income for the conglomerate, then the lower will be its tendency to assist the managers.

Social implications – From a regulatory standpoint, the implementation of measures aimed at transferring capital between funds without cost would allow mutual fund investors to intensify their reaction to fund performance, therefore increasing the likelihood of lower agency costs. We also conclude that supervisory authorities should pay special attention to the banking relationships of firms and banks to whom the asset management component is secondary and with smaller direct stakes in the said firm.

Originality/Value of paper – We develop a theoretical framework to explain the absence of activism of institutional investors integrated in financial conglomerates in the governance of listed firms.

The paper aims to investigate organizational variables and develop their relationship with horizontal strategy. The cultural dimensions and organization structure have been considered as organizational variables. The study also aims to shed light on the implementation horizontal strategy in conglomerates.

A survey was carried out with 122 conglomerate firms for examination. These companies were chosen to be of different sizes and sectors. The multiple regression analysis was utilized to analyze the data.

The results reveal that conglomerate firms also have a horizontal strategy. Additionally, organizational cultural dimensions namely, collectivism, clan culture, market culture and long-term orientation; formal and informal relationship; and horizontal organization structure (HOS) have positive and significant relationship with horizontal strategy. No significant relationship was found between uncertainty avoidance and adhocracy culture, and horizontal strategy.

The major contributions of this study are explicitly identified as horizontal strategy exists in the conglomerate firms where the few organizational variables play a significant role in horizontal strategy implementation.

This study has been done in an effort to make supporting guidelines to fill the gaps in conglomerate firms. This study offers an effective role of cultural dimensions and structure as drivers of horizontal strategy implementation, and this study spells out and extends the literature and proposes a conceptual framework.

The chapter addresses the unique aspects of Brazil’s news agencies and the Brazilian news syndication market. It reveals the pattern of Brazil’s two prevailing business models regarding the wire services industry: that of the State, particularly the federal government, which invested little in a nationwide distributor to peripheral and alternative media; and that of major media conglomerates, which set out their syndication services labeled as “news agencies” in order to multiply profits with no extra labor. In the latter case, an asymmetrical relationship of dependency and circularity ensues between these major conglomerates and regional media groups, who rely on these “news agencies” to perpetuate their dominance in local markets. The chapter also assesses a few causes for this unique model and describes the main players in Brazil’s news agency sector. A concise historical background is presented (Molina, Morais, Saroldi & Moreira) and provides context for the present-day players in the news agency business in Brazil, including the institutional framework they form with their customers, predominantly smaller newspapers. The chapter analyzes attributes of the Brazilian news agency ecology, including the parallel reach of distribution networks belonging to the private and state-owned agencies; the adaptation of conglomerate agencies to challenges entailed by the digital convergence (shrinking newsrooms, multitasking staff); and the prevalence of the interconglomerate model within the Brazilian news syndication industry.

This study aims to explore how management accounting practices act as drivers of organizational change in situations of institutional complexity.

A case study was carried out in a small company with a strongly rooted social culture, which was acquired by a large conglomerate and underwent a process of strategic change as part of a new control logic. Based on this, the study analyzes the evolution of this change, with a particular focus on the efforts to construct the meaning of the performance through the inscription of objects from the cultural system to which it is attached and the “situated rationality” of the managers who are involved in its production.

The authors show how managers link their own concepts of performance to accounting practices. At the same time, the authors show how accounting practices unfold through representational gaps that their production generates.

This study acknowledges that bias may arise from reliance on retrospective views of past processes and events, gathered primarily through interviews, documentation and observations.

This study highlights that the way in which the performance concept is presented by accounting practices can have a constructive effect on the organization through the aspirations that its representations entail, thus having the potential to stimulate change in organizations.

This study contributes to the organizational literature by clarifying that accounting practices drive change by providing spaces for debates and questions that affect the way organizations understand and report their performance.

Some strategy authors suggest that in an emerging market a local conglomerate enjoys certain potential advantages over a smaller focused firm. It can leverage its corporate image to build customer loyalty and raise funds from the capital market. It can mobilise resources from within the group companies to invest in enhancing the corporate image, in developing its own management‐training centre, and for liaison with the government and bureaucracy. It can also avoid retrenchment of surplus employees by transferring them across the group companies. The authors, however, contend that many of the advantages mentioned above cannot be realised in practice and the top management finds it difficult to effectively manage a large conglomerate. They suggest a model, which will help a conglomerate decide which businesses to retain or divest. They also highlight certain strategies adopted by Indian firms to combat foreign competition in the domestic market.

In this observation study the theory of conglomerated conflict behavior is tested. The impact of seven conflict behaviors on substantive and relational conflict outcomes is examined through multiple independent observations of 103 Dutch nurse managers handling a standardized conflict. Results show that process controlling is most important for achieving substantive outcomes, whereas problem solving, confronting, and forcing are most important for relational outcomes. In addition, substantive and relational outcomes are positively related. Implications for managerial practice and training are discussed.

Strategy.

Undergraduate final year or MBA.

This teaching case describes the journey undertaken by Yoma Strategic Holdings (YSH) Ltd, a Singapore-listed company that operates predominately in Myanmar, to become a successful and highly profitable conglomerate business empire in Myanmar. The case provides a rich contextual description of how YSH leveraged upon its partnerships and capabilities, especially with its parent and sister companies, to pursue its conglomerate business model. To facilitate the discussion that this teaching case aims to generate among lecturers and students, we have provided a summary of the latest developments in Myanmar since the 2010 general election. This helps to give students an appreciation of the challenges involved in creating a successful business in Myanmar.

The learning outcomes that this teaching case hopes to achieve in students are as follows: Understand the concept of “economies of scope” in corporate strategy; identify and explain the various corporate strategies (i.e. diversification and vertical integration) that can be implemented to develop a conglomerate business model; recognize the organizational and managerial issues arising from implementing these corporate strategies and understand the circumstances that influence its success; and assess the relative advantages of managing a business in a conglomerate business model and advise a company on whether a particular activity should be undertaken internally or outsourced.

Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

The purpose of this paper is to investigate the previous mixed findings in the relationship between diversification and firm performance. Using international and industrial conglomerates, the paper introduces productivity as a moderating variable to ascertain whether the mixed views in the diversification-performance nexus is due to variations in productivity. The findings in both proxies of performance (q and return on asset (ROA)) show that productivity is not a significant moderator in the diversification-performance link, except that under industrial conglomerates productivity enhances ROAs significantly. Meanwhile, the results show that diversification either has no significant value on firm performance or relates negatively with performance – a contrasting result to the hypothesis of this study.

This study adopts diversification measurement, categorisation approach and the methodology used in the work of Fauver et al. (2004) and the subsequent modification by Lee et al. (2012). This study, however, investigates the moderating effect of productivity on diversified firms and not ownership as shown in the previous studies. Performance is measured by two proxies to show robustness of the study. ROA is an accounting tool and Tobin’s q reflects a market-based performance of the firm.

The results show that productivity has no moderating impact on a market-based performance of a diversified firm. Regarding ROA, results show a split in finding by showing that productivity has no significant impact on international diversification; however, for industrial diversification, results show significant impact.

The paper adds to knowledge of finance by ruling out the view that the inconsistencies in the diversification and performance nexus in emerging economies could be due to vagaries in productivity. It is confirmed that productivity technically does not strengthen the link between diversification and performance: suggesting that factors other than productivity could establish a maximal impact on that link to minimise the inconsistencies in the findings on diversification-performance link.

This paper is part of the Merger Project being carried out at the International Institute of Management. The bulk of the project consists of studies of the determinants and effects of mergers in seven countries. Since most of the mergers in Europe are between firms in the same industry, or vertically connected, the other studies which are part of the Merger Project do not focus on the conglomerate merger per se. The conglomerate merger, a merger between firms in unrelated industries, has been a major form of merger only in the United States so far.

As monolithic corporations and public agencies seek ways of adapting to the demands of the next century many such institutions, while wishing to retain the benefits of belonging to an identifiable corporation, are recreating themselves as conglomerates of “loosely coupled businesses”. This situation creates new challenges for corporate communications specialists and educators. Corporate communication in devolved systems must involve design of specific solutions for the knowledge management and communication needs of individual businesses based on local knowledge of the systems likely to be affected. This paper presents a case study analysis of a local government organisation undergoing change and from it derives suggestions for the implementation of a communication model involving consultation and education in devolved systems.

Although corporate structures in Japan and, to a lesser extent Korea, have been examined in the literature, in most cases the framework is not comparative. In other cases the framework is comparative, with keiretsu and chaebol compared to US conglomerates. A third foreign conglomerate, the Mexican grupo, has thus far escaped much serious attention by scholars. Attempts to compare the structure of keiretsu, chaebol, and grupo in terms of the other. Aims to identify what can be learned from comparing foreign corporate structures with other foreign corporate structures, rather than with corporate structures in the USA.

By responding to scholarly calls, this study examines the environmental reports of LVMH and Kering. The study extends legitimacy theory to ascertain the credibility of the aforementioned luxury conglomerates' commitment to environmental sustainability.

A corpus-assisted discourse analysis centred upon the Global Reporting Initiative (GRI) guidelines is used to examine the environmental disclosures of LVMH and Kering.

The findings show inconsistencies due to the lack of brand-level reporting and reporting quality falls short of comparable sustainability reporting within each conglomerate and with one another. Selective and unbalanced reporting along with symbolic management undermines the legitimacy of sustainability efforts by LVMH and Kering.

Despite the increased attention paid to sustainable luxury, few studies critically analyse how luxury brands formally report on sustainability.

This paper considers the obstacles to the regulation of financial conglomerates and the events that have shaped thinking at the regulators, in particular in the banking context. In the light of the Barings debacle in particular it identifies some of the issues that such financial institutions raise for financial systems and the authorities, concluding with the challenges faced by national regulators in an increasingly global environment and what needs to be put in place to meet those challenges.

This study raises the question of whether the nature of the merger and acquisition (M&A) strategy per se, that is reflected throughout the M&A process, may lead to a potential trade-off between the two main objectives of M&As – synergy success and efficiency gains, which may explain the high failure rate of the M&A strategy. The purpose of this paper is to present a mediation model to explore the potential trade-off that may exist between synergy success and efficiency gains. The model examines whether the change in the workforce size during the M&A process mediates the relationship between the types of M&A and M&A success, resulting in a trade-off.

The study uses a sample of 394 public firms.

The study reveals that if the management over-increases the workforce size to realize the synergy potential, then it heightens the risk of the “win synergy-lose efficiency” trade-off, resulting in an increase in revenue growth but a decrease in profitability. The results even show that international M&As lead to an “over” increase in the workforce size to maximize the synergy potential, but at the same time, an increase in the workforce size harms the efficiency gains, resulting in a decrease in profitability. However, vertical and conglomerate M&As may lead neither to synergy success nor to efficiency gains, which reflects a situation of no benefits from the M&A for the acquirer.

The study emphasizes that one of the main challenges in the implementation of the M&A strategy is to strike a balance between the objective of improving efficiency through cutting costs and workforce reduction during the integration stage and the objective of realizing the synergy potential, despite the workforce reduction during the M&A process.

With the beleaguered ABB struggling to stay out of the red as Siemens announces quarterly profits substantially up on the past months, the jury is still out on conglomerates. Are they a thing of the past or will they survive this economic slump to rise triumphant later this decade? There is compelling evidence on either side.

As companies grow and increase the number of products they have on offer, they generally change and adapt their organizational structures, in order to arrange their resources and product mix in ways that will create value. We analyze various corporate structures that have been adopted by U.S., European, and Japanese companies, in the context of the resource‐based view of the firm. These corporate structures include functional, divisional, conglomerate diversification, core competence‐based diversification, and keiretsu. We also identify an emerging structure. This recent development is a network of alliances, aimed at pursuing economies of scale, scope, and speed.

Do accommodative or integrative components make contentious conflict behavior more effective? A questionnaire study shows that Japanese subordinates (N = 136) handle interpersonal conflicts with superiors more effectively to the extent that they complement high contending with high accommodating. By contrast, prior research shows that high contending by Dutch subordinates and superiors is more effective if complemented with high integrating. Together, these findings support the notion that the most effective conglomeration of contending with other components of conflict behavior is society‐specific.

Agency theorists diagnosed the economic malaise of the 1970s as the result of executive obsession with corporate stability over profitability. Management swallowed many of the pills agency theorists prescribed to increase entrepreneurialism and risk-taking; stock options, dediversification, debt financing, and outsider board members. Management did not swallow the pills prescribed to moderate risk: executive equity holding and independent boards. Thus, in practice, the remedy heightened corporate risk-taking without imposing constraints. Both recessions of the new millennium can be traced directly to these changes in strategy. To date, regulators have proposed nothing to undo the perverse incentives of the new “shareholder value” system.

This chapter explores the origins, development, and organization of the main Portuguese capitalist groups throughout the fascist dictatorship, the Carnation Revolution, and the neoliberal European integration until the onset of the financial crisis of 2008. The Portuguese experience confirms that, far from the usual neoliberal view that presents the process of accumulation and concentration of capital as the result of fair market mechanisms, large capitalist groups emerge as a combination of three factors: privileged access to finance, State protection, and family inheritance. Furthermore, it is argued that, if capital is considered as embodiment of power relations and not as factor of production, the link between concentration/accumulation of capital and economic growth is appropriately lost. Concentration strategies can have a detrimental effect on the economy. In Portugal, the dominance of these large economic groups contributed to the development of a rentist economic structure that was contrary to the goals of productive and economic development.

With the development of the economy, an increasing number of listed companies form subsidiaries in China. Though the increase in the number of subsidiaries affects the hierarchical structure and risk of conglomerates, few studies relate the hierarchical relationship between the parent company and its subsidiaries to its capital market performance at the conglomerate level. Therefore, this study aims to investigate the relationship between the number of subsidiaries and crash risk.

Using a sample of all the A-share companies in the Shanghai and Shenzhen stock markets from 2007 to 2015, this study conducts multivariate regression analyses between the number of subsidiaries and the stock price crash risk.

This study finds an inversed U relationship between the number of subsidiaries and the stock price crash risk, and the above inversed U relationship is steeper in conglomerates with stronger managerial power and less finance distress.

This research has an incremental contribution to the agency problem and governance effect of the parent–subsidiary system in conglomerates. To the best of the authors’ knowledge, this is the first study to show a significant quadratic relationship between the future crash risk and the number of subsidiaries. This paper provides new evidence that the number of subsidiaries has an incremental ability to predict future firm-specific crash risk above other predictors identified by previous research.

The purpose of this paper is to develop a luxury brand management (LBM) framework that accounts for the changing luxury environment (i.e. heterogeneous consumer populations, operations within markets of varying maturity, need for seamless customer experiences, and Omni-channel retailing). Framework set within this new luxury business environment and environmental phenomena unique to the fashion industry (i.e. fashion adoption, zeitgeist).

Case study of leading luxury conglomerate, Louis Vuitton Möet Hennessy (LVMH), combined with in-depth historical review of luxury industry. Primary and secondary data sources yielded thick descriptions of brands in LVMH portfolio and larger luxury industry, in which conglomerate is the predominant organizational structure. Content analysis of data-tracked relationships and emergent patterns. Recontextualization techniques were employed to identify key dimensions of brand management operations for sample company and further explicated indicators, sub-variables, and measurements. Macro and micro dimensions were combined for the final framework.

Findings revealed a LBM framework with specific dimensions at the micro or company level that are combined with variables and indicators in the macro-business environment. Strategic management response was also identified as a tool companies can use to synthesize brand management strategies throughout company and remain adaptive to environment.

Contributes to company-based luxury research. Holistic findings; framework was constructed from the micro-company level within a macro-environmental context, increasing its relevancy for firms. Potential to be employed in strategic brand management decisions of luxury companies, regardless of their corporate structure, size, or age.

The purpose of this paper is to investigate the linkages among different employee benefits, business strategies and organizational cultures. The manufacturing and service sectors in the conglomerate industry are investigated.

Analysis of variance (ANOVA) are used for the statistical verification of the hypotheses, whereas Levene’s test and Wilk–Shapiro tests are conducted to verify the assumptions of ANOVA.

The results reported indicate that the social class benefits (SCB) and long-term benefits (LTB) are high in defenders as compared to prospectors and innovators, whereas group incentive schemes (GIS) are lower in the defender, and power distance and uncertainty avoidance are higher in the defender as compared to prospector and innovator.

This paper highlights that if mismatch among the employee benefits, strategy and culture occurs, then it becomes a hurdle to the good performance of organization and employee. The proposed model focuses on the effective coherence among the strategy, culture and benefits for leveraging the business processes. This research along with enriching the already existing literature would also act as a guidelines to practitioners implementing organizational change and development and to the academicians for extending the research in this area.

It has been established in the study that employee benefits (SCB, LTB, GIS and result-oriented benefits) are completely different for innovators, defenders and prospectors for conglomerate firms.

In the 1960s and early 1970s, big was beautiful. Corporate America saw a trend toward conglomerates. An investment in a diversified company was considered a good bet. If one of the conglomerate's businesses took a downturn, perhaps the others could carry it. A more recent trend has been for companies to focus on one industry. Investors are more likely to seek out companies that have a “pure play.”

The purpose of this paper is to develop industry specific operational definitions for marketing dimensions and sub-variables in the luxury goods industry that will contribute to the growing body of company-based research on luxury brand management.

Case study of a leading luxury goods conglomerate provides operational definitions and insight into best practices for management of a luxury goods brand through an in-depth historical review and analysis of variables, measures, relationships, and patterns that emerged throughout the study of the sample company.

Successes and failures of brand management for the sample company for the umbrella variables of brand strategy, growth trade-offs, and strategic planning, and their associated sub-variables, were identified in the review of literature and were analyzed, adapted, and enumerated according to findings from the case study.

Results limited to the study of one sample company. Common themes were identified in the management of a luxury brand that can be used by researchers to study other luxury companies.

Variables and measures for luxury brand management were identified throughout the review of literature and verified throughout the case study as being instrumental in brand management success of a leading luxury goods conglomerate and may be relevant to other luxury companies aiming to hone their brand management strategies.

Luxury goods research is increasing in prominence, but the majority of this research is consumer-based. This research contributes to the growing body of company-based luxury research.

The purpose of this paper is to examine the impact of internal corporate governance mechanisms, including interest alignment and control devices, on the unrelated diversification level in Vietnam. Additionally, the moderation of free cash flow (FCF) on these relationships is also tested.

The study is based on a balanced panel data set of 70 listed companies in both stock markets, Ho Chi Minh Stock Exchange and Hanoi Stock Exchange, in Vietnam for the years 2007–2014, which gives 560 observations in total.

The results show that if executive ownership for CEOs is increased, then the extent of diversification is likely to be reduced. However, the link between unrelated diversification level and executive stock option, another interest alignment device, cannot be confirmed. Among three control devices (level of blockholder ownership, board composition and separation of CEO and chairman positions), the study finds a positive connection between diversification and blockholder ownership, and statistically insignificant relations between the conglomerate diversification level and board composition, or CEO duality. Additionally, this study discovers a negative link between diversification and state ownership, although there is no evidence to support the change to the effect of each internal corporate governance mechanism on the diversification level of a firm between high and low FCF.

The research can be a useful reference not only for investors and managers but also for policy makers in Vietnam. This study explores the relationship among corporate governance, diversification and firm value in Vietnam, where the topics related to effectiveness of corporate governance mechanisms to public companies has been increasingly attractive to researchers since the default of Vietnam Shipbuilding Industry Group (Vinashin) happened in 2010 and the Circular No. 121/2012/TT-BTC on 26 July 2012 of the Vietnamese Ministry of Finance was issued with regulations on corporate governance applicable to listed firms in this country.

This research, first, enriches current literature on the relationship between corporate governance and firm diversification. It can be considered as a contribution to the related topic with an example of Vietnam, a developing country in Asia. Second, the research continues to prove non-unification in results showing the relationship between corporate governance and conglomerate diversification among different nations. Third, it provides a potential input for future research works on the moderation of FCF to the effects of corporate governance on diversification.

This article examines the impact of substantial mergers on systematic risk — market model beta — estimates for a sample of large UK companies. Unlike the previous US studies in the area, the paper then relates the change in beta to a measure of the extent of diversification present in the acquisition. It is found that diversifying mergers did not decrease risk and, indeed, increased it on average. Furthermore, diversifying mergers did have a significantly greater impact on risk than non‐diversifying mergers.

The purpose of this paper is to look at the main empirical findings related to the bank‐insurance model and to outline the market practices across the world. The market dynamics underpinning the bancassurance phenomenon are analyzed alongside discussions of the various bancassurance products and bank‐insurance modes of entry.

The paper presents a brief survey of the bank‐insurance trend and provides an insight into the underlying dynamics and corporate structures of financial conglomerates.

There is an uneven success of the bancassurance phenomenon across the world. It is not clear whether re‐regulation is the cause or response to globalization, and vice versa, which in turn both shape the bancassurance arena. A number of incentives for the formation of financial conglomerates are identified. Finally, three modes of entry have been documented to reflect market realities.

The paper will be of value to those interested in financial conglomerates, banking and insurance. It is suitable for academics and practitioners alike.

In the 1960s, portfolio management led to conglomeration as management shifted its focus from competition to cash flows. However, dramatic changes in the business environment have put into question the fundamental logic of conglomeration as it became necessary once again to build sustainable competitive advantage. Towards this end, deconglomeration is taking place through restructurings. The process model of restructuring identifies negative value gap and the market for corporate control as antecedent factors to restructuring. The resources required for implementing a particular strategy, and management's ability to control the course of restructuring are identified as critical factors.

The purpose of this paper is to contribute to the human resources (HR) literature by using exploratory network analysis (ENA), a data-driven technique. This technique was employed to discover how the perceived effectiveness of HR practices interrelate with employee perceptions on organizational cultural factors to enhance organizational commitment.

The authors used data from 1,459 employees of a large South Korean conglomerate and studied how individual HR practices could be enhanced by specific organizational cultural factors. The data were analyzed using ENA, which is an inductive approach.

The authors found that organizational commitment is associated with the positive perceptions of employees on the effectiveness of HR practices, such as performance appraisal, training and development, and compensation. Results show that when both HR practices and organizational cultural factors are considered, they appear to influence organizational commitment independently.

Data were collected from a large conglomerate. The authors were limited by the use of the scales developed by a consulting firm. Therefore, readers should be cautious about the generalizability of the findings.

The application of a data-driven technique (ENA) highlights the potentially fertile methodological grounds for HR research. Literature on strategic HR management may benefit from inductive approaches, wherein data serve as primary foundation for the design and development of new theories.

This chapter examines whether the geographic distance between subsidiaries of multinational banks and their headquarters is an important factor in determining the performance of the subsidiaries. Using various performance indicators of 340 subsidiaries in 54 emerging and developing economies from 69 global banks during the years 1994–2008, we find evidence that first, the distance constraint adversely affects loan growth, profitability, and performance of foreign bank subsidiaries, and second, the unfavorable information asymmetry faced by foreign banks, due to the distance constraint, in financing foreign clients cannot be fully overcome by establishing their presence abroad such as setting up their foreign subsidiaries. We further examine if the effect of distance is symmetric across different banks and countries and find the following various economic, financial, and institutional factors to affect the strength of distance constraints in the multinational banking activities: the entry mode of foreign banks, the history of presence in local markets, the existence of credit information institutions, the cultural similarity between the home and host markets, financial depth, financial crisis periods, the stock market development, the banking market structure in host markets, and the hierarchy of the subsidiary in the multinational banking conglomerate.

This study outlines some major findings of the impact of ownership concentration on corporate performance, investment and financing decisions in the Malaysian corporate sector. Earlier studies on corporate governance linked very concentrated ownership structure to weak corporate governance, thus leading firms to make poor investment and financing decisions. However, a firm that strives towards maximising shareholder’s wealth would select its investment and financing strategy with care. Thus concentrated ownership has also been found to lead to better corporate performance, and that composition of ownership is an important element to spur better corporate performance.

Major concern over monopolies and trusts was one of the distinguishing marks of the American Economic Association from its foundation and lasted well into the early 1900s (Coats, 1960). The failed merger attempt of the Northern Securities Company and the subsequent panic of 1902–1903, the 1907 financial crisis and its aftermath, as well as the ostensibly illegal financial practices of many conglomerates, all contributed to keep the trusts issue alive on academic circles. But it was only after the 1911 Court decisions that the debate on the trust problem and the necessary measures to amend the existing antitrust legislation acquired new vigor and incisiveness.³

Develops a classification of executive information systems. (EIS). EIS implementations cluster into four distinct groups, called the 4 Cs: Conglomerate; control and monitoring; competitive and intelligence; communication and efficiency. Explores the characteristics of the classes within this taxonomy. Argues, among other things, that the objective use of EIS can be considered as a strategic management aid to top management teams.

Researchers in the field of business ethics have posited that an organization's ethical climate can benefit for employees as well as organizations. However, most of the prior research has been conducted at the level of the individual, not organization. Thus, the purpose of this paper is to examine how an organization's ethical climate has a positive influence on two its performance indicators – customer satisfaction and financial performance – with a perspective of organizational innovation.

The data were collected from 29 subsidiaries of a conglomerate in South Korea. Hypotheses were tested using the partial least squares (PLS).

The result showed that an organization's ethical climate was positively related to customer satisfaction as well as financial performance, and this relationship was mediated by perceived organizational innovation. Additionally, the positive influence of an ethical climate on employees’ perceived organizational innovation was mediated by their organizational commitment and the climate for innovation.

With a focus on innovation, the study explained how an organization's ethical climate influences customer satisfaction and financial performance. Furthermore, as was the case in studies conducted in other developed countries, the results derived from South Korea sample demonstrated that an ethical climate is critical for organizational performances in developing countries.

Globus, the Swiss retail organisation, is a classic example of a retail conglomerate. It includes seven department stores, 35 chain stores, 11 menswear shops, two department stores in France and a small publishing operation. Since 1974 a new system of management has been in operation which has had its effect on organisational structure. Hans Mahler, Globus President, outlined this system to a distinguished audience gathered together in London ‐ it formed the occasion for the Fifth Fraser Lecture on Retailing.

This article opens up for debate a new perspective on professional quality in externally supplied coaching.

Three provider size‐types are taken in turn and interpreted in relation to characteristic quality issues.

Professional quality characteristically varies with different types of coaching provider. Three primary provider types are identified: large conglomerates (often multinational); the solo market where coaches work as individuals; and the specialised coaching team or “boutique”. Provider size is suggested to be the key quality‐related variable distinguishing these three types. Professional quality is specified inclusively through identifying the factors currently in the coaching quality debate. This allows a menu of factors to be considered non‐judgementally in relation to the provider types.

The article suggests how the characteristic size pluses can be realised and the minuses avoided.

Provider size does not seem to have been debated before as a key variable in coaching quality.

In the context of emerging economies, the purpose of this paper is to seek the critical success factors (CSFs) of supply chain and identify their relationships to enhance the supply chain performance (SCP) in a sample of Indian manufacturing firms.

On the basis of a comprehensive literature review, the authors conducted this study and proposed a new model of antecedent and outcomes for SCP in emerging markets. The empirical data for this study were drawn from a survey of 227 Indian firms, resulting in a response rate of 52 percent. The method of confirmatory factor analysis was applied to refine the CSFs and SCP scale for empirical analysis. The data were analyzed by employing the structural equation modeling technique.

The results reveal that all the identified CSFs, namely, agility, flexibility, flexible innovation, information and communication technology, collaboration among conglomerate divisions, process structure, and training and leadership programs, are positively associated with SCP. The empirical study of 227 Indian firms lent good support to the hypotheses and validates it by the data analysis. Consequently, these findings highlight the prominence of these factors of supply chain for gaining a sustainable competitive advantage in emerging market scenario.

The study emphasizes on CSFs in emerging markets that will help to boost the organization’s SCP through agility and flexibility in supply chain. This study is applicable for growing markets in which there is ample amount of resources.

As economic growth stagnates in developed economies, emerging markets grow at near double-digit rates. Somehow, this study is pioneer in terms of enhance SCP in emerging market scenario. Moreover, the outcome of the study could provide empirical evidence of the effects of CSFs on SCPs.

American industry is in the midst of a new merger boom. Recent studies, however, show that such mergers do not necessarily enhance profits, boost productivity, aid efficiency, or result in social good. Given these findings, you ought to seriously question whether a proposed merger is a sound strategic decision before acting on it.

Shows how Mr Cha‐Kyung Koo, Chairman of the Lucky‐Goldstar Group (one of the three larger conglomerates in South Korea), successfully initiated and implemented empowerment in his organization. Empowerment is the process of sharing power with employees, motivating them, and holding them responsible for continuous improvements. The process includes: (1) setting meaningful and mutually‐determined goals; (2) motivating employees to achieve those goals; (3) designing jobs so employees can utilize their creativity; and (4) rewarding outstanding performance. The empowerment process in Lucky‐Goldstar begins with autonomous management, i.e. with delegation of authority to each “culture unit”. Using internal financial audits and results‐oriented appraisals as two strong control mechanisms, each culture unit strives to perform effectively and efficiently. In that process Lucky‐Goldstar provides supportive actions to help the unit continuously improve performance. After each year′s performance, a “consensus meeting” and “signing ceremony” take place to confirm the intense commitment that is required to make the process successful.

The purpose of this paper is to investigate the organizational aspects of an open innovation approach by focusing on the relationship between universities and firms as a vehicle for acquiring technological knowledge. It discusses in detail the characteristics of firm organizational units that are devoted to managing relationships with universities and the processes that firms put in place to select research fields and partners.

Considering the complex system of variables that characterize this phenomenon, an interview‐based case study method is adopted. In order to compare behaviors and organizational approaches, a retrospective, multiple case study method with theoretical replication was employed to focus on four companies that operate in three different industries: telecoms, construction, and aviation. The goal was to better explain the studied phenomenon. After the data‐gathering phase, the cases were compared by identifying similarities and differences in terms of four different drivers, the relevance of which were highlighted during the interviews.

First, the sampled companies do acquire external knowledge from universities, but in doing so, they take into account the technology lifecycle (or s‐curve) and its associated phases. Second, in order to manage relationships with universities, companies make different decisions vis‐à‐vis four main organizational variables: the number of people involved in the organizational unit (OU) that is devoted to managing relationships with universities; the positioning of the OU within (or outside) the firm's boundaries; the degree of work specialization in the OU; and the degree of formalization of the process.

This paper is one of the first attempts to operationalize the open innovation concept from an organizational perspective. Thus, it opens new possibilities for future organization‐focused studies on this topic.

Looking at organizational decision and choices in the 1990s, it is tempting to conclude that we live in an era of focus and downsizing. The time of the conglomerate has passed. Downsizing can always be justified to improve efficiency, but only if it is really rightsizing to prepare a strong base for renewed growth. Focus, however, is a reflection of the way many organizations are choosing to deal with a series of issues they face, for which there are no black and white, right and wrong answers, and all of which interact with each other systematically. Moreover, focus is fashionable and diversity is not. This paper uses these often paradoxical issues to examine the complexity of strategy and explain why the search for winning strategic positions comprises a series of inter‐dependent choices.

The purpose of this study is to examine how an organization's ethical climate positively relates to its financial performance by considering an organization's innovation, a support for innovation and performance evaluation.

Data were collected from employees and managers of 41 subsidiaries of a conglomerate in South Korea through survey questionnaires.

The results indicate that an organization's ethical climate is positively related to financial performance, and its positive relationship is mediated by an organization's innovation. The result also shows that a support for innovation has the moderating effect, such that the positive influence of an organization's ethical climate on its innovation increases when a support for innovation is high. However, this study fails to find the moderating effect of performance evaluation.

There might be the issue of generalizability, because the sample of this study is on the sample of a conglomerate in South Korea. Future research with different types of organizations in other nations is needed.

This study indicates that an organization's ethical climate can be a critical predictor of its innovation as well as financial performance. In this regard, organizations should pay attention to employees' perceptions of the organization's ethical climate.

This study explains the mechanisms on how an organization's ethical climate is related to its financial performance, and provides implications for organizations strivings for ethics in developing countries such as South Korea.

Presents an exploratory study of how a Japanese organization in Hong Kong attempts to enhance employees′ learning capacity through spiritual education. Illustrates the sort of spiritual education being conducted in the training programme and the extent to which the Japanese organization has achieved its target in enhancing employees′ learning capacity. Sees the implications of spiritual education for other Western and Hong Kong organizations as being that it may be an effective means of decreasing a company′s turnover rate.