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Don't miss itFor instance, Leff (1978:663) defines business group as a group of companies that does business in different markets under common administrative or financial control whose members are linked by relations of interpersonal trust on the bases of similar personal ethnic or commercial background a business group. Encarnation (1989:45) refers to Indian business houses, emphasizing multiple forms of ties among group members. Powell and Smith-Doerr (1994:388) state that a business group is a network of firms that regularly collaborate over a long time period. Granovetter (1994:454) argues that business groups refers to an intermediate level of binding, excluding on the one hand a set of firms bound merely by short-term alliances and on the other a set of firms legally consolidated into a single unit. Williamson (1975, 1985) claims that business groups lie between markets and hierarchies. Khanna and Rivkin (1999) suggest that business groups are typically not legal constructs thou
gh some regulatory bodies have attempted to codify a definition.

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The keiretsu generally include a bank, a holding or a trading company, and a diverse group of manufacturing firms (Lincoln et al. 1992). In contrast, Korea’s Chaebol are typically controlled by a single family or a small number of families and are uniformly vertically organized (Kim 1991).
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