Business groups play a vital role in the developing nations of Asia. This study examines the expansion of these groups from the perspective of relationship networks. The aim of this approach was to fill gaps in existing sociological research based on conventional political-economic theory or Chinese behavioral theory. Overall whole network diagrams were used to identify the most influential market actors & multilevel models were employed to verify hypotheses. Results show that organizational slack positively influences firms size. The power of an organization within its relationship network determines the allocation of resources &positively influences subsidiaries.