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Diversified Business Groups and the Transnationalisation of the Salvadorean Economy

Published online by Cambridge University Press:  15 May 2013

BENEDICTE BULL
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Abstract

El Salvador has undergone a deep economic transformation over recent decades, from a model based on agro-exports to an open, transnational service-based economy. This transformation has occurred in a context dominated historically by a small group of elite families that formed family-owned diversified business groups (DBGs). This paper studies the leading groups' strategies in confronting transnationalisation. It shows that the DBGs have adapted to the new realities through a combination of sector shifts, internationalisation and the adoption of different kinds of relationships with multinationals. In spite of this, there is little evidence that the DBGs have become less important or subordinate to multinational corporations. Rather, they have, in different ways, exploited their local and regional knowledge and networks to confront competition at home and expand at the regional level.

Spanish abstract

El Salvador ha padecido una profunda transformación económica en las últimas décadas, pasando de un modelo basado en la agroexportación a una economía abierta, transnacional y basada en servicios. Esta transformación se ha dado en un contexto dominado históricamente por un pequeño núcleo de familias de élite que han formado grupos diversificados empresariales de propiedad familiar. Este artículo estudia las estrategias de tales grupos líderes para confrontar la transnacionalización. Muestra que ellos se han adaptado a las nuevas realidades a través de una combinación de transformaciones de los sectores, la internacionalización y la adopción de diferentes tipos de relaciones con las multinacionales. Pese a ello, hay pocas pruebas de que dichos grupos se han vuelto menos importantes o subordinados de las corporaciones multinacionales. En vez de ello, estos han explotado de diferentes formas su conocimiento y sus redes locales y regionales para enfrentar la competencia en casa y expandirse a nivel regional.

Portuguese abstract

El Salvador sofreu profundas transformações econômicas durante décadas recentes, partindo de um modelo baseado em exportações agrícolas para uma economia transnacional baseada em serviços. Esta transformação ocorreu em um contexto historicamente dominado por um pequeno grupo de famílias da elite que formaram grupos empresariais diversificados (GEDs) pertencentes às famílias. Este artigo estuda as estratégias dos principais grupos ao confrontar a transnacionalização. Mostra que os GEDs adaptaram-se às novas realidades através de uma combinação de deslocamentos de setores, internacionalização e a adoção de diferentes tipos de relações com as multinacionais. A despeito disto, há poucas evidências que indicam uma perda de importância ou subordinação dos GEDs às corporações multinacionais. Ao invés, eles têm explorado seu conhecimento local e regional assim como suas redes de formas distintas para enfrentar competição doméstica e para expandir no nível regional.

Keywords

business groupsglobalisationtransnationalisationEl Salvadorgrupos empresarialesglobalizacióntransnacionalizaciónEl Salvadorgrupos empresariaisglobalizaçãotransnacionalizaçãoEl Salvador
Type
Research Article
Information
Journal of Latin American Studies , Volume 45 , Issue 2 , May 2013 , pp. 265 - 295
Copyright
Copyright © Cambridge University Press 2013 

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