末廣 昭

Using insights drawn from business history and business group literature, we develop a model to analyze how family business groups in late industrializing countries cope with management resource limitations that plague them in their pursuit of growth and diversification. A field study was conducted analyzing 215 family business groups in Thailand. Results suggest that family business groups will survive, and even prosper, if they are able to adapt their strategies and modernize their management styles to overcome three management resource limitations (or "management critical points")-fund raising, production technology, and human resources. There is a detailed discussion of the different strategies that help to extend these upper limits or management critical points. We then divide family business groups into four types, which are based on their diversification and management strategies. We argue that their performances vary and that the modernized single business type and the modernized conglomerate type will be the future forms of family business groups, which will ensure that they remain competitive in the new global economy. Using our model, we conclude that family business groups in Thailand are still disinclined to make the transition to managerial enterprises, according to the conventional Anglo-Saxon model.

This article aims to examine the development of business groups in Thailand. It considers business groups, not just as a response to market failure or institutional voids in emerging markets, but as vehicles for economic catch-up with more industrialized nations. This article briefly describes the development of business, with an emphasis on family-run groups, and their survival despite changes in economic and political environments until the 2000s. It then sketches the structure of ownership and management of family business groups. It also examines the business diversification and internationalization strategies of major business groups before and after the 1997 Asian financial crisis. It also looks at the impacts of the crisis, and at corporate governance reform, focusing on the banking sector and listed companies. Finally, this article concludes by looking at the competitive capabilities of leading Thai business groups, and considers their future challenges.