Corporate Resources And Diversification Strategy

This paper use China listed companies (2004 -2006)(excluding financial companies)as sample and the resource-based theory to research what makes Chinese companies choose different type of diversification strategy. How the enterprise resource effect diversification strategies type has been studied through descriptive statistics and the linear regression model. This research also verified the how the different diversification type affects on corporate resources, and through studying the link between diversification type and corporate performance to prove that the type of diversification strategy is neutral. This paper found only in the situation that diversification type matches the corporate resources characteristic the efficiency of the resource can be increased. Both related and unrelated diversification strategy can bring benefits to the enterprise. Diversification strategy type itself is only means of allocating resources, and can not be simply used to describe the good or bad. The biggest difference between this paper and previous research is that the diversification strategy type's impact on the efficiency of resources is included into the research system, making resource-based theory of diversification research more comprehensive, and enterprise resource indicators has been broken down into stock indicators and efficiency indicators to make the model on a higher degree of data types match.