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The effect of political stability and ownership on the business groups' location decisions

Kader Şahin and Tuğba Kaplan

International Journal of Business and Emerging Markets, 2024, vol. 16, issue 2, 238-260

Abstract: Internationalisation decisions are extremely important for emerging country business groups (EBGs), which have to struggle with political and economic uncertainties. This study aims to examine the location decisions of leading EBGs regarding asset-exploitation motives, political stability, and ownership. The sample consists of 11 EBGs from Türkiye. The qualitative phase consists of face-to-face interviews and content analysis. The quantitative phase includes regression analyses. According to the results, EBGs invest in emerging countries with asset-exploitation motives under the moderation of political stability and ownership. This research differs from previous studies by handling EBGs and subsidiaries, collecting data from primary and secondary sources, and including qualitative and quantitative analyses by investigating the moderator effect of political stability and ownership. The study suggests that there is a need for a multilateral strategy, which combines market, government, and social-sector actors of all stakeholders, and provides new insights for the internationalisation decisions of EBGs.

Keywords: business groups; emerging countries; political stability; ownership; location decisions. (search for similar items in EconPapers)
Date: 2024
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