Studies of the structure and competitive behavior of organizational forms, as the Japanese keiretsu and Korean chaebol provided to look at alternative ways of organizing economic activity. Some forget, however, Latin American business groups, or Grupos. The activities of the Mexican business groups based in Monterrey, are used to illustrate the historical development of related networks in the Mexican group, and various issues related to corporate governance.
One of the main characteristics of business groups is a pluralistic composition, that is, they are usually composed of more than one family. Joint investments were not the only mechanism that elite gathered in Monterrey, it was common for children of different families in marriage. A clear set of behavioral norms and main ideology developed in the leading business families of Monterrey. These groups can compete for their ability to create effective internal capital markets, labor, and the product is not available to outside companies. However, in some cases, the needs of the business entrepreneur is clearly secondary to that of the "grandfamily" (three-generation family of grandparents, parents and children). The consequences are examined for entry mode of multinational companies seeking to expand in Mexico. "Hide
by John Sargent Source: Business Horizons 9 pages. Published: 15 November, 2001. Prod. #: BH066-PDF-ENG
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