Research on the structure and competitive behavior of such organizational forms such as the Japanese keiretsu and the Korean chaebol has insights into alternative ways to organize an occupation. Somewhat overlooked, however, the Latin American business groups, or grupos. The activities of the Mexican business groups based in Monterrey are used to illustrate the historical development of kinship networks in the Mexican groups and various issues related to corporate governance. A … Read more »

Research on the structure and competitive behavior of such organizational forms such as the Japanese keiretsu and the Korean chaebol has insights into alternative ways to organize an occupation. Somewhat overlooked, however, the Latin American business groups, or grupos. The activities of the Mexican business groups based in Monterrey are used to illustrate the historical development of kinship networks in the Mexican groups and various issues related to corporate governance. One of the main characteristics of business groups is pluralistic composition, that is, they are usually more together as a family. Joint investments were not the only mechanism that brought together the elite of Monterrey, was to marry for the descendants of various families usual. A clear standards of conduct and an overriding ideology within Monterrey’s leading entrepreneurial families developed. These groups are not available to provide to non-affiliated companies are able to compete successfully with their ability efficient internal capital, labor and product markets. However, in some cases, the needs of an entrepreneur business are clearly secondary to those of the “grand family” (the three-generation family, grandparents, parents and children). Implications for entry mode of multinational companies looking to expand studied in Mexico.
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John Sargent
Source: Business Horizons
9 sides.
Publication Date: Nov 15, 2001. Prod #: BH066-PDF-ENG
Getting to know the neighbors know: Grupos in Mexico HBR case solution

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