The Economist has a recent article discussing how business groups are still the dominant form of business in India.  There are many reasons for this, with work done by me and Tarun Khanna on “institutional voids,” listed as one of the main drivers.  When we published this article in 1997, many people thought the need for vertically-integrated businesses in emerging markets would wane over time as institutional voids lessen.  This clearly shows that 14 years on, the institutional voids we identified still create the need for businesses to replicate many functions that are not available in the marketplace.

http://www.economist.com/node/21532449