THE ROLE OF SOCIAL NETWORKS IN FOREIGN DIRECT INVESTMENTS: THE CASE OF TURKISH BUSINESS GROUPS

• Published in: Kafkas University. Faculty of Economics and Administrative Sciences. Journal 2022, Vol.13 (Sp. Issue), p.282-304
• Main Authors: İLHAN-NAS, Tülay, DURAN, Şengül
• Format: Article
• Language: English
• Subjects: Accounting - Business Administration; Business Economy / Management; Economic history; Present Times (2010 - today); Transformation Period (1990 - 2010)
• ISSN: 1309-4289; 2149-9136

This study aims to examine the effect of network structures of Turkish business groups on foreign direct investment decisions. In line with this study, social network structures (in the dimensions of centrality and betweenness) that are handled at the business group level, are evaluated in the context of overlapping boards of directors. The scope of the study consists of 13 business groups determined according to the deliberate sampling method and 83 affiliates operating as affiliated companies of these business groups. In the study, the data about 96 enterprises (13 holdings and 83 affiliates) is obtained between 1997-2019, and their network structures (degrees of centrality and betweenness) are revealed. Afterward, the hypotheses, which are developed within the scope of the study, are tested through panel regression models. Research results show that degree centrality at the enterprise group level positively affects FDI decisions and activities. Another significant finding obtained within the scope of the study shows that there is no effect of betweenness at the enterprise group level on FDI activities.