Business Groups: Challenge for the Transactional Theory of the Firm
The article analyzes the challenge faced by the transactional theory of the firm in connection with the domination of business groups being specific organizational forms in the economies of developing countries. In response to this challenge we propose to expand the research subject of the transactional theory of the firm and thus include internalized political resource owners in the analysis. Under this approach firm owners are either financial capital owners or internalized political resource owners. This depends on the parameters of the institutional environment. In the first case a firm exists in the form of a public corporation, while the second one is represented by a business group.