Business groups in East Asia: Post-crisis restructuring and new growth

Business groups played an important role in the economic development of East Asian countries. Yet business groups in East Asia face an uncertain future. Following the Asian Crisis, foreign creditors and investors have demanded that business groups have more transparent operations and stronger corporate governance. At the same time, as governments in East Asia have loosened trade barriers, business groups have become subject to intense competition in domestic markets. This paper argues that business groups can survive or even prosper by taking initiatives in corporate restructuring. This paper also highlights some areas for further research on business groups in this region.

Sea-Jin ChangEmail:

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Sea-Jin Chang   is currently Kumho Asiana Group Chaired Professor of Business Administration, Korea University. He received his PhD in management from the Wharton School of the University of Pennsylvania. Previously, he was a faculty member of New York University. He also had visiting appointments at Stanford, INSEAD, and London Business School. Professor Chang is primarily interested in the management of diversified multinational enterprises. His research interests include diversification, corporate restructuring, foreign direct investment organizational learning, corporate growth through joint ventures and acquisitions, and comparative management studies of Japan, Korea and China.