from Part II - Applications and Empirics
Published online by Cambridge University Press: 31 August 2020
Moving from politics to economics, this chapter investigates the role of Islam in the success of an Islamic-based business association operating in Turkey. MÜSİAD, the Independent Industrialists’ and Businessmen’s Association, was founded to bring together small- and medium-sized enterprises based in Anatolia who, because of their size and their lack of political connections, struggled to succeed in Turkey’s volatile, statist economy. Since its foundation, MÜSİAD seems to have helped these small businesses grow into “Anatolian Tigers,” apparently outpacing non-member firms. While existing theories of identity-based trade would suppose that MÜSİAD’s success rests in its ability to support a reputation mechanism among member firms or, alternatively, because of its new-found political connections to the AKP or privileged access to Islamic micro-credit, I find little empirical support for these hypotheses. Instead, using data at the firm level, I show that MÜSİAD firms succeed by relying on long-term “quasi-integrative” relationships among members, relationships which mimic the benefits of vertical integration enjoyed by larger firms. More specifically, this quasi-integration serves to protect MÜSİAD members during periods of economic volatility, although it proves to less efficient under more stable conditions, including during the period of AKP rule.
To save this book to your Kindle, first ensure no-reply@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.
Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.
Find out more about the Kindle Personal Document Service.
To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.
To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.