Research On Operative Synergy In Diversified Enterprise

Cross-business synergies are the prime rationale for the existence of the multi-business firm.Therefore, they are at the core of strategic management and organization design. Nevertheless, eversince Igor Ansoff introduced cross-business synergies into the field in the1960s, research in strategyand organization has largely neglected their direct investigation. The questions of what cross-businesssynergies actually are and how they are realized remain largely unexplored. According to Martin’sstudy, the thesis conceptualizes two new types of cross-business synergies, ie, efficiency-focusedsynergy and growth synergy. The former is efficiency-focused view of synergy in the multi-businessfirm (economies of scope) and the latter generates profitable growth from recombiningcomplementary operative resources across businesses.This dissertation analyzes the cross-business synergies in multi-business enterprises from thesetwo aspects, and puts forward a new method to measure the cross-business synergies. From the aspectof efficiency synergy, two questions are studied. First, the related questions about synergistic costs.The simulation method is used to analyze the impact of synergistic cost on enterprise performance inthe first place. Furthermore, a measurement model of synergistic costs is put forward. Then, the paperanalyzes the characteristics of synergy costs，and identifies the breakpoints of synergy costs using thestructure break model. The results show that with the increase of enterprises business unit, synergycosts present nonlinear growth, and the breakpoints of synergy costs can be identified using thestructure break model. It is a effective method to control the synergy costs and form early warningmechanism. Second, the impact of technological relatedness on corporate performance is researched.By taking china high-tech listed companies from2004-2010panel data as an example, the paperanalyzes the relationship between the technological relatedness and enterprise performance andenvironmental munificence and environmental dynamism and complement assets have moderatingeffects on this relationship. The result shows that technological relatedness has an inverted U-shapedrelationship with performance. Environmental munificence and environmental dynamism havenegatively moderate the relationship between technological relatedness and firm performance. Themore human capital complementary assets are available, the greater the positive impact oftechnological relatedness on enterprise performance. Marketing complementary assets has nomoderating effects on this relationship.From the aspect of growth synergy, the impact of complementary assets on enterpriseperformance is researched. By taking China high-tech listed companies from2004-2010panel data as an example, the paper analyzes the relationship between complementary assets and enterpriseperformance and technological relatedness’ moderating effects on this relationship. In addition, thepaper analyzes complementary assets’ moderating effects of technological diversification onperformance. The results show that the synergy of complementary assets has a positive effect onperformance. The higher the degree of technological relatedness in a firm’s technology portfolio, thegreater the negative impact of the synergy of manufacturing complementary assets and marketingcomplementary assets on enterprise performance. Technological relatedness can moderate the positiverelationship between the synergy of manufacturing complementary assets and human complementaryassets and enterprise performance. Technological relatedness can moderate the positive relationshipbetween the synergy of marketing complementary assets and human complementary assets andenterprise performance. The manufacturing complementary assets’ moderating effect on thisrelationship is not supported completely. Marketing complementary assets and human complementaryassets moderate the positive relationship between technological diversification and performance.The paper puts forward a new method which can direct measure the business synergy usingcapital market performance of the firm as a whole. Then, the paper puts forward the panel data factoranalysis model to analyze the influence factors of business synergy and calculate the general factorsscores. Taking raw chemical materials and chemical products manufacturing listed companies as anexample, the paper proves that the method is valid. According to the enterprises’ common factorsscores and total scores, the strengths and weaknesses of influencing businesses synergy can be foundto improve businesses synergy development level. Based on the Er-Xiang dual theory and Synergetics,enterprise business synergy system can be divided into three subsystems: performance system,resource sharing system and resource complementation system. Based on the theoretical analysis, asystem synergetic degree model is established. By taking china high-tech listed companies from2004-2010data as an example, the paper measures the synergetic degree of China high-tech enterprisebusiness synergy. The results show that enterprise business synergy system of high-tech enterpriseshad a relative low synergetic development level. The synergetic degree of resourcesharing-performance system has been increasing, but the synergetic degree of resourcecomplementation-performance is very low.