Font Size: a A A

Approach Of Relationship Between Diversification Strategy And Economic Performance

Posted on:2003-04-05Degree:DoctorType:Dissertation
Country:ChinaCandidate:J YinFull Text:PDF
GTID:1116360062450464Subject:Management Science and Engineering
Abstract/Summary:PDF Full Text Request
With the progress of china' s reform and the development of Marketing Economics, more and more multinational enterprises(MNEs) competed with Chinese enterprise in china and the abroad. The operational power and the scale economic of ~itNEs suffered Chinese enterprises (CEs) survival crisis. In response to the crisis many CEs implemented diversification strategy to nature their strength, but mass of them failed.Chapter 1 discussed the enforcers of CEs' diversification strategy. The human resource margin and the reform of national enterprises were two peculiar factors for CEs. Globalization of economic and diversity of market were two basic factors. According to the results of investigation of CEs, several problems were listed with the causes followed. All the. formers implied the necessary and importance of the approach of relationship between diversification strategy and enterprise' s performances in china.Chapter2reviewedtheliteratureexaminesthediversification-performance (D-P) relationship, presented the definition of diversification in this dissertation based on them. There were two streams of research literature, industrial organization economic and strategic management, dealt with the profit impact of enterprise diversification. The industrial organization economic literature employed simple product-count indices that measure the total diversity of an enterprise' s operations and concluded that no significant relationship existed between diversification and enterprise performance. In contrast, the strategic management literature used a categorical measure based on the classification scheme proposed by Rumelt and report a systematic relationship between an enterprise' s diversification strategy and economic performance. Finally the dissertation pointed the deficiency of the theory of D-P relationship.Chapter 3 rebelled the view of agency theory in explaining the impact of top managers' motives on diversity decision and concluded that top managers diversified the enterprise' s operation based on the benefits of the shareholders and the enterprise. This chapter pointed that CEs should diversify on the base of core competence which could made them attained the compete advantages in new business. Finally the chapter discussed the synergy of related and unrelated diversification strategy.Chapter 4 approached the matches between diversification strategy and entry method, concluded that exclusive reliance on a single method (internal development or acquisition) restricted performance. The chapter presented six modes of entry and empirical approached them in static view and dynamic view.Chapter 5 approached the impact of four post-acquisition integration modes on economic performance. There were three types integration:organizational culture, management systems, operational businesses. The CEs should choose the appropriate mode according to the strength of organizational culture and the nature of operational businesses. The fit between post-acquisition integration modes and enterprises' situations would benefit the performance. Finally the chapter empirical approached the fit presented some suggestions.Chapter 6 dealt with the impact of control mechanisms on diversified enterprises' performance. The related diversified enterprises should rely on strategic control and the unrelated diversified enterprises should rely on financial control. The chapter discussed the relationship between diversification strategy and human resource management strategy. Finally the chapter approached the composition of top management team in diversified enterprise and concluded that the cooperation of top management team is the key factor of performance.Chapter 7 empirical approached the impact of inner factors(finance, scale, ownership, etc) and outside factors(macroeconomic, geographic scope, industry, etc) on diversified enterprises' economic performance. The results implied that there were significant difference between difference type strategy. The performance of related enterprises wer...
Keywords/Search Tags:diversification, agency theory, core competence, entry mode, post-acquisition integration mode, control mechanism, organizational, culture, top management team, factor approach
PDF Full Text Request
Related items