Turkish business system and diversification (original) (raw)
This study explores the diversification strategies of major business groups in Turkey, focusing on the interplay between these strategies and the political environment. The analysis begins by contextualizing the Turkish business system within the broader framework of state-organized business systems, characterized by significant government involvement in economic activities. The study identifies six leading Turkish business groups and examines their diversification strategies across ten distinct political periods from 1923 to 2016. Drawing on the classification of diversified business groups by Schneider (2010), the study categorizes Turkish business groups as organic, portfolio, or policy-induced, based on their core motivations, scope of diversification, and integration of management. The findings reveal that political factors heavily influence the diversification strategies of Turkish business groups, with government policies and incentives playing a crucial role in shaping these strategies. The study contributes to the literature by providing empirical evidence from a developing country context, highlighting the unique motivations and challenges faced by business groups in Turkey. The results underscore the importance of considering political and institutional factors in understanding the growth and diversification of business groups in developing economies. Keywords: Turkish business system, diversification strategies, business groups, political environment, state-organized business systems.
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