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Extra resources for Business Groups and Transnational Capitalism in Central America: Economic and Political Strategies
In other words, diversification may ensure a steady supply of important input and information (Guillén, 2000). One such input is skilled labor Between Hierarchies and Networks 25 and managerial talent that can be developed and shared among affiliate firms in order to overcome deficiencies in the labor market (Chang & Hong, 2000). However, in the recent literature on business groups it is increasingly recognized that while business group diversification is a result of adaptation to the institutional environment, by employing purposive strategies in pursuit of their self-interested objectives, the groups also play a profound role in shaping their local environments (Carney & Gedajlovic, 2002).
39 40 Business Groups and Transnational Capitalism However, data collected at one point in time has clear limitations as a means to arrive at conclusions about directions of change. Moreover, as the analysis of the 67 groups shows, there are clear differences between groups emerging from different national contexts. Thus in the second part of this chapter we analyze national trajectories in more detail. This will allow us both to follow developments over time and to discuss the importance of national institutions for the evolution of the DBGs in a global economy.
Controlling or not a majority in the legislative is usually a strong signal about how effectively presidents can implement their agendas. Furthermore, the predominance of proportional systems often forces presidents to deal with multiparty coalitions, which often leads to compromises and softens more radical agendas of reform. Schneider and Karscher (2010) argue that this combination of a majoritarian presidential system and pluralistic legislatures is complementary to the dominance by the DBGs.