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Neither Parasite nor Paragon: Are Business Groups a Source of Competitive Power?

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  • Ömer T. Doruk

Abstract

While profit persistence has been widely examined in the current literature, there have been no extensive studies on the link between business group membership and profit persistence on an emerging market. Using panel data econometric methods, this article examines the link between profit persistence and membership in a large industrialists' group, also known as the TUSIAD (Turkish Industrialists' and Businessmen's Foundation), in the Turkish manufacturing sector in the period 1990-2017. The findings show that the re- lative magnitude of profit persistence of firms with TUSIAD membership is higher than those without TUSIAD membership in the Turkish manufacturing sector.

Suggested Citation

  • Ömer T. Doruk, 2022. "Neither Parasite nor Paragon: Are Business Groups a Source of Competitive Power?," Prague Economic Papers, Prague University of Economics and Business, vol. 2022(2), pages 143-168.
    • Handle: RePEc:prg:jnlpep:v:2022:y:2022:i:2:id:800:p:143-168
    DOI: 10.18267/j.pep.800
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    More about this item

    Keywords

    Profit persistence; business group membership; Turkish manufacturing sector;
    All these keywords.

    JEL classification:

    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • L19 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Other
    • L69 - Industrial Organization - - Industry Studies: Manufacturing - - - Other

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