Technological Innovation and Business Groups

Mike Hobday and Asli M. Colpan

in The Oxford Handbook of Business Groups

Published in print August 2010 | ISBN: 9780199552863
Published online September 2010 | | DOI:

Series: Oxford Handbooks in Business and Management

 Technological Innovation and Business Groups

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  • Business and Management
  • Knowledge Management
  • Organizational Theory and Behaviour


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This article examines the challenges facing diversified business groups in late-industrializing economies, as they acquire technology and learn to innovate. In particular, it assesses the role business groups play in technological innovation processes. This article thus attempts to identify the internal business strategies as well as external conditions that lead business groups to take a positive and developmental role in those economies. The main focus of this article is on technological innovation, rather than organizational or institutional innovation, although the latter often accompany the former. Also, as it deals with business groups in the late-industrializing economies of the twentieth century, the core activity is usually incremental “catch-up” innovation and technological acquisition, which involves significant technology transfer from developed and industrialized countries. This is to be contrasted with the R&D and new product-based “leadership innovation” of leading corporations operating in the most advanced economies.

Keywords: business groups; late-industrializing economies; technological innovation processes; internal business strategies; technological innovation

Article.  8195 words. 

Subjects: Business and Management ; Knowledge Management ; Organizational Theory and Behaviour

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