Business Groups Research Articles

Salient research topics on boards of directors of family firms in the Latin American context – An institutional perspective

Family firms (FFs) have unique governance characteristics regarding their Boards of Directors (BoDs) and have been found to behave differently than other organizations due to the involvement of the controlling families. While cultural and institutional contexts have been suggested to influence the way companies are governed, most research on governance and BoDs in FFs (that results in theory development and prescription of practices) has been conducted in the institutional context of developed economies. Consequently, there is a lack of knowledge regarding the governance and BoDs of FFs in developing regions such as Latin America.In order to close this gap, this study reviews the literature regarding business governance and BoDs of FFs in Latin America and compares it with the knowledge coming from developed economies. It also detects the most salient topics that attracts the undivided attention of researchers in Latin America: rights expropriation, business groups and interlocking of directors. Furthermore, this paper proposes a model that explains the salience of these topics based on the institutional domains and cultural context shaping corporate governance and characterizes each of its key elements (capital, management/labor, and State) in the context of Latin America. Finally, fruitful directions for further research are suggested.

The contagion effect of overconfidence in business group

Overconfidence is a common psychological phenomenon among individuals. Business groups are important participants in China. This paper combines these two important topics by studying the effects of overconfidence contagion effects in the business group. Based on the 2007–2019 Shanghai and Shenzhen A-share group holding listed companies' hand-collected samples, this paper proves that if one group member shows overconfidence, the other members are more likely to be overconfidence in the next year, proving that there is overconfidence contagion effect within the business group. Further analyses find that the sociological theory, the psychological theory, and the business group theory can explain the mechanism of the contagion effect of overconfidence. Besides, this paper also finds that from macro to micro, there are many factors may influence this effect. Our findings not only enrich research on contagion effects in the business group, but also provide empirical evidence that why overconfidence has become a widespread psychological phenomenon.

Optimal Intraproject Learning

Problem definition: Intraproject learning in project scheduling involves the use of learning among the similar tasks in a project to improve the overall performance of the project schedule. Under intraproject learning, knowledge gained from completing some tasks in a project is used to execute similar later tasks in the same project more efficiently. We provide the first model and solution algorithms to address this intraproject learning problem. Academic/practical relevance: Intraproject learning is possible when, for example, the difficulty of the tasks becomes better understood, or the efficiency of the resources used becomes better known. Hence, it is necessary to explore the potential of intraproject learning to further improve the performance of project scheduling. Because learning consumes time, firms may underinvest in intraproject learning if they do not recognize its value. Although the project scheduling literature discusses the potential value of using obtained information from learning within the same project, we formally model and optimize the use of intraproject learning in project scheduling. Methodology/results: We model the tradeoff between investing time in learning from completed tasks and achieving reduced durations for subsequent tasks to minimize the total project cost. We show that this problem is intractable. We develop a heuristic that finds near optimal solutions and a strong relaxation that allows some learning from partially completed tasks. Our computational study identifies project characteristics where intraproject learning is most worthwhile. In doing so, it motivates project managers to understand and apply intraproject learning to improve the performance of their projects. A real case is provided by a problem of the Consumer Business Group of Huawei Corporation, for which our model and algorithm provide a greater than 20% improvement in project duration. Managerial implications: We find consistent evidence that projects in general can benefit substantially from intraproject learning, and larger projects benefit more. Our computational studies provide the following insights. First, the benefit from learning varies with the features of the project network, and projects with more complex networks possess greater potential benefit from intraproject learning and deserve more attention to learning opportunities; second, noncritical tasks at an earlier project stage should be learned more extensively; and third, tasks that are more similar (or have more similar processes) to later tasks also deserve more investment in learning. Learning should also be invested more in tasks that have more successors, where knowledge gained can be used repetitively. Funding: This work was supported by the National Natural Science Foundation of China [Grant 71732003 to N. G. Hall and Grants 72131010 and 72232001 to W. Zhao], the Shanghai Subject Chief Scientist Program [Grant 16XD1401700 to G. Wan], and the Program for Professor of Special Appointment (Eastern Scholar) at Shanghai Institutions of Higher Learning [Grant TP2022019 to W. Zhao]. Supplemental Material: The online appendix is available at https://doi.org/10.1287/msom.2022.0159 .

Corporate Networks and Business Groups in Egypt, 1924–1948: Economic Necessity or Entrepreneurial Dynamism

By providing fresh insights into the development of Egyptian corporate networks and business groups between the early 1920s and late 1940s, this article extends the geographical ambit of an expanding field of study. Data from contemporaneous sources were analyzed through social network analysis techniques, in the search for an improved understanding of both the nature of and motivations behind networking in Egypt. In conducting this exercise, this article assesses the success with which the state acted to stimulate local entrepreneurship in its search for greater economic independence. By linking the Egyptian case to a wider literature on corporate networks, the article reveals similarities with other cases of how developing economies responded to the challenges of that era.

Tinjauan Ekonomi Islam Terhadap Bantuan Perekonomian Masyarakat

The economic problems faced by society, especially in terms of income, are divided into several groups, namely groups with high income, groups with low income, and groups that are still in the cycle of poverty. Viewed based on this, this creates problems of economic inequality or disparity, which in the end will create boundaries between these groups. Especially for groups that are still classified as poor families, they will be increasingly isolated in society. The aim of this research is to evaluate the assistance program from the Ministry of Social Affairs called the Joint Business Group (KUBE). Apart from that, this research also aims to determine the implementation process and obstacles to the KUBE assistance program. This research was conducted in Purwoagung Tegaldlimo village, Banyuwangi Regency. In the evaluation process, researchers used 6 indicators, namely effectiveness, efficiency, adequacy, alignment, responsiveness and accuracy. The method used is a case study with a qualitative approach. The results of the researchers' findings in the field can be concluded that the implementation of the KUBE assistance program in Purwoagung Tegaldlimo village, Banyuwangi Regency cannot be said to be successful. Because of the 6 indicators used, only 3 indicators were met, namely efficiency, adequacy and leveling. Meanwhile, the implementation process goes through 5 stages, namely the selection, verification, checking, disbursement and monitoring stages. The obstacles to the development of the KUBE assistance program in Purwoagung Tegaldlimo village, Banyuwangi Regency are determining the business sector, mentoring, product marketing, COVID-19, and commitment between members.

Strategi Bisnis Pada Kelompok Usaha Batu Bata Di Kelurahan Limbung Kecamatan Bajeng

Rezki Putri Amalia’s 2023. “Business Strategy in Brick Business Group in Limbung Village. Guided by Mr. Agung Widhi Kurniawan ST. MM. and Mrs. TenriSayu Puspitaningsih Dipoatmodjo SE, MM. This research aims to find out and analyze the business strategy of the Brick Craftsman Business Group in Limbung Village, Bajeng District, Gowa Regency and to find out the opportunities and challenges faced by Brick Craftsman Businesses in Limbung Village, Bajeng District, Gowa Regency. The number of informants in this research was 6 people as brick entrepreneurs in Limbung Village, Bajeng District, Gowa Regency. The data analysis used is SWOT analysis. The results of the research show that the business strategy of brick craftsmen in Limbung sub-district, Bajeng sub-district, Gowa Regency is expanding market share and increasing the quality of brick products. Opportunities in running a brick business in the Limbung sub-district, Bajeng District, Gowa Regency are that the product for making house stones is brick and the demand for bricks is quite high. The challenges faced by brick craftsmen in the Limbung sub-district, Bajeng sub-district, Gowa Regency, are uncertain weather and the emergence of many new business-based competitors.

Sectoral dynamics of industrial policy in a two-sector economy: the case of Korea’s heavy and chemical industry (HCI) promotion (1973–1979)

This study explores the impact of state’s industrial policy on sectoral capacity utilization and growth in total output in the context of the Korea’s Heavy and Chemical Industry (HCI) promotion (1973–1979). Using a Kalecki-Steindl framework within a two-sector open economy, the study first finds that primary industrial policy instruments—preferential interest rates and export promotion regime—have a positive effect on capacity utilization (aggregate demand) and economic growth, but unbalanced sectoral dependence undermines the effect of industrial policy. Second, the increased market power of firms in the targeted sector has a dual impact on the sectoral capacity, depending on the productivity growth characteristics of each sector. Third, the industrial policy regime is highly susceptible to adverse external price shocks. These findings are consistent with the Korean growth experience during the HCI promotion period in which chaebols (big business groups) flourished, and the economy suffered from stagflation and idle capacity in the final stage of HCI promotion.

The Sosialisasi Pangan Darurat: Pengasapan Pangan Asal Hewani di Kelompok Sari Tani Kecamatan Cugenang Kabupaten Cianjur

Cianjur is a high-risk area for seismic disasters, so it is important to pay attention to emergency food supplies. One type of emergency food that could be developed is smoked foods of animal origin (PAH). The activities carried out are aimed at generating enthusiasm and enhancing the skills of the community so that they can continue to process food products of animal origin and can produce them independently. So that Cianjur, especially Cugenang district, becomes a disaster-resilient area. future area. PKM activities were carried out on August 18, 2023 at Sari Tani Group's business location, Wangun Jaya Village, Cugenang District, Cianjur, West Java, with Sari Tani Group partners. The steps taken to implement PKM activities included discussion, socialization, and evaluation of the activities (pre-test and post-test). The results of PKM activities show a change in the level of understanding of participants about influencing factors, processing steps and methods that can be applied in smoking technology of original food products. animals, from 20% to 93.33%. PKM results also showed changes in participants' level of knowledge about correct methods according to regulations of the US Food and Drug Administration (FDA), and the role of smoke chemicals in the process. disinfection and any negative effects that may arise from root-based disinfection technology from 6.67% to 86.67%.

Transformation of Creative Economy Based on Home Industry to Encourage Family Resilience and Increase Community Income

This research aims to explain the creative economic development based on home industry carried out by EcoNatural Society Foundation, explain its impact on community income, and supporting factors in creative economic development at EcoNatural Society Foundation. The method used is descriptive qualitative research, the way data is collected is through observation, interviews, and documentation of the object of research. The data analysis technique uses descriptive analysis. The results showed (1) the development of a home industry-based creative economy carried out by the EcoNatural Society Foundation through the formation of household business groups, (2) an increase in the income of people participating in household business groups, (3) internal and external factors that support the development carried out by the EcoNatural Society Foundation in Selayar Islands Regency.

Learning Revitalization: MI Muhammadiyah Balung Teachers Welcome The E-Learning Era With Moodle

In this training, teachers are trained and supported to create additional web-based learning systems (e-learning) using LMS (Learning Management System). LMS is the most important tool in the teaching and learning process using software. This training uses an LMS, namely Moodle, which is based on open source code. Moodle is useful software for creating and delivering courses, used in training, and/or web-based education. The training was attended by 7 teachers from MI Muhammadiyah Balung. All participants are teachers, with areas of expertise in the technology group and the management and business group. The level of participation of participants who took part in the training was high as shown by their participation for two full days, participants showed their enthusiasm for associating information, especially related to e-learning creation and content development. The evaluation results in the form of independent assignments produced good results, where all participants were able to complete the assignments independently, with different durations for each participant

Hukum Dan Usaha Remaja Masjid Mukhtarul Arifin Perumahan Cipta Asri Kelurahan Tembesi Kota Batam

The material provided in this coaching is divided into 2 groups, namely the legal group and the business group aimed at "Youth / Young Generation". The coaching material given to the legal group is to provide an introduction and / or understanding of the existing arrangements (rules of law), because after all he will be the next generation of religious leadership, nation and state. To not be wrong, then from an early age given an understanding of the rule of law that exists in the midst of the nation and state society. With the hope that with a brief education / training like this, he will understand. The debriefing material provided to business groups is to provide an introduction and/or understanding and invite adolescents/young people from an early age to develop their talents in business. To understand the importance of living independently in the future, of course in this case how to do good business, full of honesty and justice, and understand how to develop.

Evaluation of Decision Making on Using Online Media in the D'Amerta Berniaga Bandung Business Group

An organization/company cannot be separated from decision-making. Intuitive decision-making is highly discouraged if it is not from a reliable source because the level of deviation that occurs can be very large. Therefore, we need a reliable basis for making a decision. The D'Amerta Berniaga business group does not use online media to carry out its business. This has resulted in the underdevelopment of the business being carried out, given the increasingly fierce business competition at this time. However, the decision to use online media is very difficult considering that business owners are housewives and sole implementers in their businesses. This resulted in an increase in workload and a very large amount of time to use online media, causing doubts about the decisions to be taken. Therefore, training on the use of online media was carried out in an effort to overcome this problem. The existence of training makes business owners interested in using online media. The business owner's decision to use online media needs to be evaluated to determine the accuracy of the decisions taken. This study aims to see whether the decisions taken by business owners, namely using online media, are appropriate and able to contribute to their business. The method used is a quantitative method with a descriptive approach. Measurements were made based on the total population of 30 respondents by pretest-posttest. Based on the test results with the paired t-test, it can be seen that the decisions taken, namely using online media, have a significant influence on existing businesses.

MANAJEMAN PENGELOLAAN BANK WAKAF MIKRO DALAM PEMBERDAYAAN EKONOMI UMAT (STUDI BANK WAKAF MIKRO PONDOK PESANTREN AS’AD KOTA JAMBI)

This research is entitled Management of Micro Waqf Banks in Empowering the People's Economy. In this research the Micro Waqf Bank (BWM) is a Sharia Microfinance Institution that is registered and supervised by the Financial Services Authority (OJK) which aims to provide access to capital services for low-income people who do not yet have access to financial institutions and ease the burden on people who are ensnared by moneylenders. Micro Waqf Banks also play a role in empowering the community and the community of women around Islamic boarding schools by encouraging the development of their businesses through providing loan funds to productive community business groups and community groups that wish to open businesses. The approach used in this study is descriptive qualitative with data collection methods of observation, interviews and documentation. The results of this study indicate that the Community Economic Empowerment at As'ad Seberang Micro Waqf Bank Jambi City cannot be said to be good and perfect because there are some customers who use borrowed money not as an additional capital for their business but for other purposes such as paying off debt. costs of daily living, medical expenses and others. This has resulted in the objective of establishing Micro Waqf Banks as an institution that provides access to capital for small communities who do not yet have access to formal financial institutions to empower communities around Islamic boarding schools by encouraging business development through providing loan funds to productive community business groups not being fully achieved. In addition, due to the low understanding of customers regarding productive waqf and the purpose of establishing Micro Waqf Banks. Keywords: Management Management, Empowerment, People's Economy.

PENGEMBANGAN USAHA KERAJINAN KERANG LAUT PADA KELOMPOK PENGRAJIN KERANG KING SAGUNA JAYA DI KELURAHAN SERANGAN, KECAMATAN DENPASAR SELATAN

Bali is one of the islands that is a tourism destination for all tourists around the world. Regarding crafts on the island of Bali, each region has its own identity regarding the crafts produced. Residents in South Bali utilize maritime wealth as a craft. Marine wealth that is usually used to make crafts that can be modified is in the form of sea shells. One of the business groups making sea shell crafts is located in the South Denpasar area, to be precise in Serangan Village, South Denpasar District. Based on the Green Economy pattern where the use of natural materials that do not damage the environment is an added value for this business, and reflects concern for reducing the impact of the risk of environmental damage. However, this business has several weaknesses in terms of financial recording and marketing which is not yet optimal. Based on the training provided by the service team, partners finally have the understanding and ability to prepare simple financial reports and make sales online.

Socioemotional wealth and family feuds: corporate social responsibility as insurance

PurposeThis study explores family firms' ex ante conflict management strategies to preserve their socioemotional wealth (SEW) under predictable conflict through the succession process. Specifically, the authors examine how family firms leverage the insurance-like benefits of corporate social responsibility (CSR) to mitigate the threat of foreseeable family feuds among the sons of firms' family heads.Design/methodology/approachThe authors focus on the charitable donations pledged by Korean family business groups (chaebols). Using the data of 62 chaebols with generalized least squares (GLS) models, the authors analyze 711 observations from 2005 to 2017.FindingsThe authors find a positive relationship between the number of sons of a family firm's head and the firm's CSR activities such as spending on charitable donations. Furthermore, the number of daughters of heads in executive positions strengthens such a positive relationship, whereas the number of business and political marriage ties weakens this relationship.Practical implicationsFamily heads of family businesses may leverage CSR activities and marriage ties to elite families interchangeably to ward off negative impacts from foreseeable family feuds and preserve their SEW. Thus, a policy-based incentive for CSR that encourages more family heads to use CSR as insurance would serve the public interest.Originality/valueThe authors contribute to the family business literature by suggesting that CSR activities can be used by family firms as an instrument to mitigate foreseeable damage to the SEW caused by family feuds. The authors also shed new light on CSR research by finding that marriage ties to elite families may reduce the strategic value of CSR activities.

Exploiting Growth Opportunities: The Role of Internal Labour Markets

Abstract We explore how business groups use internal labour markets (ILMs) in response to changing economic conditions. We show that following the exit of a large industry competitor, group-affiliated firms expand, and gain market share by increasing their reliance on the ILM to ensure swift hiring, especially of technical managers and skilled blue collar workers. The ability to take advantage of this shock to growth opportunities is greater in firms with closer access to their affiliates’ human capital, as geographical proximity facilitates employee relocations across units. Overall, our findings point to the ILM as a prominent mechanism making affiliation with a business group valuable at times of change. For the ILM to perform its role in the face of industry shocks, group sectoral diversification must be combined with geographical proximity between affiliates.

A Competitive Strategy Quality System of SME’s Handicraft Products in a Development Country (Study in Central Java Province, Indonesia)

SMEs in developing countries often face the problem of the policy determining the competitive strategy quality system to develop business performance. Analyzing how to improve the performance of handicraft SMEs within the context of the effect of the competitive strategy and quality system of SMEs is required to address the issues raised above. Thus, a research model was developed using four research variables: strategic asset quality, adaptability, the entrepreneurial orientation of SME owners, and competitive strategy quality. Data regarding the variables studied used a structured questionnaire so that the structured statements in the questionnaire were able to answer the research variables, which 110 handicraft owners then answered in Central Java Province, Indonesia. Following the collection of the data, the structural equation modeling (SEM) method was used to analyze it. The model created for this study is a fit, according to the findings of the model testing. The competitive strategy quality system is positively and significantly impacted by the analytical findings about the role of strategic asset quality, environmental adaptability, and entrepreneurial orientation. According to the results of the hypothesis, enhancing the capability of asset quality indicators and the company's environmental adaptability may be used to improve the competitive strategy quality system of the Handicraft Product Small Business Group in Central Java Province, Indonesia.

Earnings Management and Characteristics of Female Directors: The Case of Building Construction Company

Purpose: Financial performance is the main standard in a company. This study aims to analyze the influence of Characteristics of Female Directors which investigates the relationship between the presence of female directors on corporate boards and management earnings, with a special focus on the specific attributes of female directors on financial performance and analyzing earnings management on financial performance. Theoretical framework: Gender Diversity, Director Affiliation, Director Characteristics, female directors and earnings management as independent variables, while financial performance with ROA as the dependent variable. Design/methodology/approach: The control variable are ROE, leverage, directors, block owners, family dummy, and size board. Earnings management is measured by Discretionary Accruals Net Profit - Cash and Cash Equivalents/Total Assets t-1) and financial performance using ROA (Return On Assets). The data used in this research is secondary data. The total population used in this study were 17 building construction sub-sector companies listed on the Indonesia Stock Exchange. The data collection technique in this study was purposive sampling and data were obtained from 8 companies. The analytical method uses the classical assumption test, multiple linear regression test, test the coefficient of determination, and test the hypothesis. Findings: Based on the results of the study it can be concluded that the presence of female directors on company boards is not related to profit management. Similar results were obtained for the percentage of female directors with certain attributes such as busyness, expertise professionals, and audit committee membership. Surprisingly, the results show that there is a negative (positive) relationship between the percentage of affiliated (unaffiliated) female directors with controlling business groups and management profit. Simultaneously significant effect on ROA. Partially, Gender Diversity, Director Affiliation, Director Characteristics, female directors and earnings management each have an effect on ROA. Research, Practical & Social implications: In further research, in order to conduct a broader research with other objects. The research is expected to be used for all companies. Originality/value: The authors declare no potential conflicts of interest with respect to the research, authorship, and publication of this article.

K-Means Clustering and Multilayer Perceptron for Categorizing Student Business Groups

The research conducted in this study was driven by the East Java provincial government's requirement to assess the transaction levels of the Student Business Group (KUS) in the SMA Double Track program. These transaction levels are a basis for allocating supplementary financial aid to each business group. The system's primary objective is to assist the provincial government of East Java in making well-informed choices pertaining to the distribution of supplementary capital to the KUS. The classification technique employed in this study is the multilayer perceptron. However, the K-Means Clustering method is utilised to generate target data due to the limited availability during the classification process, which involves dividing the transaction level attributes into three distinct groups: (0) low transactions, (1) medium transactions, and (2) high transactions. The clustering process encompasses three distinct features: (1) income, (2) spending, and (3) profit. These three traits will be utilized as input data throughout the categorization procedure. The classification procedure employing the Multilayer Perceptron technique involved processing a dataset including 1383 data points. The training data constituted 80% of the dataset, while the remaining 20% was allocated for testing. In order to evaluate the efficacy of the constructed model, the training error was assessed using K-Fold cross-validation, yielding an average accuracy score of 0.92. In the present study, the categorization technique yielded an accuracy of 0.96. This model aims to classify scenarios when the dataset lacks prior target data.

Running From the Union Label? Labor and Business Political Mobilization in the Golden Age

This paper assesses labor's political effectiveness in the industrial Midwest at the peak of union strength during the 1950s—a time and place that should have been ripe for labor mobilization. Comparing labor and business mobilization and outcomes across key labor elections, I find that politicians and business groups were often successful in persuading industrial communities to vote against labor's interests while unions struggled to shed outsider and greedy special interest labels. To make sense of labor's mixed performance, I draw on social movement theory and the inter-related nature of union mobilization, countermovement organization, and the framing of labor issues. Labor struggled when facing a well-organized business countermovement, which effectively weaponized the union label against labor. Union success hinged in part on their ability to downplay union identity and to have other more respected community partners do much of the public-facing work, but only when facing a fractured opposition. The findings point to important vulnerabilities unions faced at their peak and suggest a more nuanced view of postwar labor relations. They also extend social movement research on framing by identifying the important role of countermovements and coalitions in shaping what movements can convey and what will resonate.