Concentration and Diversification of Production by Example of Major Indian Business groups

The goal of this work is to show that in contrast with the dominating economic concept, that concentration and expansion of production in one or several neighboring industries is the natural and economically reasonable mechanism for business growth, there is an alternative model of big business deve...

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Autor principal:	M. A. Vorobyeva
Formato:	article
Lenguaje:	EN RU
Publicado:	MGIMO University Press 2015
Materias:	industrial diversification concentration business-groups conglomerates managing agencies the indian economy market imperfect competition International relations JZ2-6530
Acceso en línea:	https://doaj.org/article/24a37d6a69d648778cb88bf310a99f90
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id	oai:doaj.org-article:24a37d6a69d648778cb88bf310a99f90
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spelling	oai:doaj.org-article:24a37d6a69d648778cb88bf310a99f902021-11-23T14:50:59ZConcentration and Diversification of Production by Example of Major Indian Business groups2071-81602541-909910.24833/2071-8160-2015-1-40-137-143https://doaj.org/article/24a37d6a69d648778cb88bf310a99f902015-02-01T00:00:00Zhttps://www.vestnik.mgimo.ru/jour/article/view/293https://doaj.org/toc/2071-8160https://doaj.org/toc/2541-9099The goal of this work is to show that in contrast with the dominating economic concept, that concentration and expansion of production in one or several neighboring industries is the natural and economically reasonable mechanism for business growth, there is an alternative model of big business development, such as the industrial diversification. In this paper we analyze the phenomenon of big capital diversification on example of Indian business groups. We assume that diversification appears to be a necessary, and sometimes the only possible way of big business development amid imperfect market competition, inherent in emerging markets. We show that the main feature of big business formation in India, due to some conditions of colonial and postcolonial development, is that capital concentration was not accompanied by industrial concentration. The factors which condition the absence of industrial concentration in the Indian business groups are: the activity of managing agencies and other specifics of primitive capital accumulation, state regulations and licensing policy, state limitations on the scale of production, tough Monopoly Act, various market distortions etc. The paper also postulates that heterogenic industrial structure predetermines organizational and managerial forms big business takes. It resumes that industrial diversification enables big business to better adjust to market and legal imperfections as well as to hedge transnationalisation risks. As a business strategy diversification is common not only to India, but to other big vibrant rapidly developing economies. The success of Asian and Latin American business groups and conglomerates is worthy of a comprehensive investigation to adopt their experience in Russia.M. A. VorobyevaMGIMO University Pressarticleindustrial diversificationconcentrationbusiness-groupsconglomeratesmanaging agenciesthe indian economymarketimperfect competitionInternational relationsJZ2-6530ENRUVestnik MGIMO-Universiteta, Vol 0, Iss 1(40), Pp 137-143 (2015)
institution	DOAJ
collection	DOAJ
language	EN RU
topic	industrial diversification concentration business-groups conglomerates managing agencies the indian economy market imperfect competition International relations JZ2-6530
spellingShingle	industrial diversification concentration business-groups conglomerates managing agencies the indian economy market imperfect competition International relations JZ2-6530 M. A. Vorobyeva Concentration and Diversification of Production by Example of Major Indian Business groups
description	The goal of this work is to show that in contrast with the dominating economic concept, that concentration and expansion of production in one or several neighboring industries is the natural and economically reasonable mechanism for business growth, there is an alternative model of big business development, such as the industrial diversification. In this paper we analyze the phenomenon of big capital diversification on example of Indian business groups. We assume that diversification appears to be a necessary, and sometimes the only possible way of big business development amid imperfect market competition, inherent in emerging markets. We show that the main feature of big business formation in India, due to some conditions of colonial and postcolonial development, is that capital concentration was not accompanied by industrial concentration. The factors which condition the absence of industrial concentration in the Indian business groups are: the activity of managing agencies and other specifics of primitive capital accumulation, state regulations and licensing policy, state limitations on the scale of production, tough Monopoly Act, various market distortions etc. The paper also postulates that heterogenic industrial structure predetermines organizational and managerial forms big business takes. It resumes that industrial diversification enables big business to better adjust to market and legal imperfections as well as to hedge transnationalisation risks. As a business strategy diversification is common not only to India, but to other big vibrant rapidly developing economies. The success of Asian and Latin American business groups and conglomerates is worthy of a comprehensive investigation to adopt their experience in Russia.
format	article
author	M. A. Vorobyeva
author_facet	M. A. Vorobyeva
author_sort	M. A. Vorobyeva
title	Concentration and Diversification of Production by Example of Major Indian Business groups
title_short	Concentration and Diversification of Production by Example of Major Indian Business groups
title_full	Concentration and Diversification of Production by Example of Major Indian Business groups
title_fullStr	Concentration and Diversification of Production by Example of Major Indian Business groups
title_full_unstemmed	Concentration and Diversification of Production by Example of Major Indian Business groups
title_sort	concentration and diversification of production by example of major indian business groups
publisher	MGIMO University Press
publishDate	2015
url	https://doaj.org/article/24a37d6a69d648778cb88bf310a99f90
work_keys_str_mv	AT mavorobyeva concentrationanddiversificationofproductionbyexampleofmajorindianbusinessgroups
_version_	1718416262155993088

Concentration and Diversification of Production by Example of Major Indian Business groups

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