When is a nexus of contracts more firm-like? We theoretically and empirically address this question in the context of business groups. We develop a model where assets can be diverted from one group affiliate to another and asset redeployment is more valuable when firms operate in related...

This paper examines the relationship between strategic decision-making at the subsidiary level and organization structure. In many organizations, the interaction between central headquarters and subsidiaries is mediated by the presence of intermediate organizational units. Building on the...