AIB 2012 Conference Proceedings - Academy of International ...

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interconnectedness has changed. This has greatly reduced the explanatory and predictive power of traditional
theories of political risk based on factors such as bargaining power or structural attributes of political
institutions. In this paper, we examine the political risk faced by Google in China through the lens of both the
traditional bargaining power approach as well as an emergent, legitimacy-based view, and find the latter
perspective to better explain Google's experience. Likewise, we find that Google's experience can be used to
create testable propositions and further conceptual development of this legitimacy-based approach to political
risk. (For more information, please contact: Charles Edward Stevens, University of Wyoming, USA:
csteve10@uwyo.edu)
Institutional Contexts and Diversification Patterns of Business Groups in Emerging Economies: The Case of
Turkish Family Holdings
Bahattin Karademir, Cukurova University
Huseyin Ozgen, Cukurova University
Atilla Yaprak, Wayne State University
The formation of business groups in emerging markets has inspired a growing body of literature. While this
literature has addressed the potential motivators of these groups' diversification into unrelated industries, their
strategic response to changes in their institutional and market contexts has not been adequately explored. In
this paper, we explore this question through examining the diversification of Family Business Groups in Turkey.
We examine the diversification levels of 77 business groups, and find slight variation in the diversification level
of business groups established in different institutional time periods. We also find that the earlier cohort of BGs
is more heterogeneous than the recent cohorts in terms of their diversification. We also find that bank-affiliated
groups are more diversified. The diversification of business groups is significantly associated with their size and
time of founding. The larger size and the earlier cohort of business groups are more diversified. In contrast to
conventional wisdom, we find a slight variation in the diversification level of business groups established during
the state-centered and the liberalization periods of Turkey. We suggest that the state's increasing share in the
economy and slow development of market institutions in the post-1980 Liberalization Period explain this finding.
(For more information, please contact: Bahattin Karademir, Cukurova University, Turkey: bdemir@cu.edu.tr)
Session: 2.4.P - Panel
Track: 1 - Institutions, Governance, and CSR
Showcase Panel on Institutional Theory in International Business
Presented On: July 2, 2012 - 14:30-15:45
Chair: Timothy M. Devinney, University of Technology, Sydney
Co-Chair: Laszlo Tihanyi, Texas A&M University
Panelists:
Michael Hitt, Texas A&M University
Robert Hoskisson, Rice University
Stewart Miller, University of Texas at San Antonio
Torben Pedersen, Copenhagen Business School
This highly interactive panel focuses on the use of institutional theory in international business research. The
goals of the session are to introduce new ideas and frameworks from the traditions of neoinstitutional
economics and sociology and to provide answers to theoretical and methodological questions related to the
design of empirical studies from the institutional perspective. The session is organized around ideas and papers
in the forthcoming volume of the Advances in International Management series (Emerald) of the same title and
presents a great opportunity for informed debate about the field. Using ""roundtables"" led by leading scholars,
AIB 2012 Conference Proceedings
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