Suggesting a contingency framework for formation of conglomerate corporations based on the prevailing logics in the Iranian business environment

Document Type : Sterategic Management

Authors

1 shahid beheshti university

2 Associate Professor, Faculty of Management and Accounting, Shahid Beheshti University, Tehran, iran

3 Faculty of management and accounting, Shahid Beheshti University

4 assistant professor

Abstract

, the present study seeks to provide a model for the formation of conglomerate corporates in the private business environment. The statistical population of the study was all the senior managers of head offices in the businesses of conglomerate corporates in the private corporate space, which were evaluated through semi-structured interviews. Thus, in the first part, the factors affecting the formation of such corporates in the theoretical literature were examined to complete the model obtained from the theoretical part. In the second part, the areas governing the space of conglomerate corporates were identified, which have three logics of synergy, business and managers' inclinations. In the next section, the dominant factors in each logic were identified. Based on the dominant factors in each logic, the three main themes in the three logics with a series of formulated assumptions are examined. Syntactic logic was dominated by structural factors in which organizational structure was selected. For the logic of managers' desires, behavioral factors were dominant, the composition of the board members was selected, and finally, for business logic, the underlying factors were dominant, which were based on the intensity of competition. The results showed that among the three identified logics, synergistic logic had the lowest degree of heterogeneity and managers' tendencies had the highest degree of heterogeneity. Also, when the intensity of competition is high, the composition of the board of directors is heterogeneous and the organizational structure is sectoral, the possibility of forming the most diversity (conglomerate) becomes relevant.

Keywords

Main Subjects

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History

  • Receive Date: 08 June 2021
  • Revise Date: 22 March 2022
  • Accept Date: 23 January 2023

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