Merchants as Business Groups: British Trading Companies in Asia before 1945

Merchants formed an important component of British foreign direct investment before 1945. Locating in parts of Asia, Latin America and other developing economies, they often diversified into non-trading activities, including the ownership of plantations. This article examines three such British firms active initially in Asia, though with operations also in North America, Europe, and Africa. Often regarded as handicapped by managerial failings, especially from the early twentieth century, the authors cast these firms as more entrepreneurial and possessing greater managerial competencies than has been suggested. The article argues that their business strategies continued to evolve in the interwar years and that, when viewed as business groups, their organizational forms were robust, though considerable diversity in the performance of the three British firms can be observed. This evidence is shown to have implications for wider debates about the competencies of British management as a whole.