Abstract: Evolution of National and International Resource Constraints and Business Groups: The Historical Case of a Turkish Family Holding, 1950-1999
In this study, we attempt to contribute to the literature on the evolution of business groups by providing a rich historical case study of a Turkish business group's evolution during the second half of the twentieth century. We emphasize the role of macroeconomic expenditure flows as well as of certain environmental and firm-level constraints in shaping the group's evolutionary pattern. When the level and direction of macroeconomic expenditure flows varied during the second half of the twentieth century in Turkey, the business group's investment strategy and structure also varied. Fit with the macroeconomic expenditure flows and environmental constraints resulted in better performance and growth, whereas misfit with environmental constraints and certain firm-level characteristics brought about below average performance and consolidation. Our case study also corroborates the earlier explanations of business group evolution based on asymmetric trade and investment flows and institutional voids.