| It is the necessary choice for an enterprise to expand its scale when it develops to some extent. Many enterprises pay more attention to the scale expansion to grow and increase the economy benefit. However, many retail companies has already been in a dilemma that the scale of retail is expanding, but operation performance is decreasing. How to deal with the correlation between scale expansion and operation performance of retail companies becomes a very exigent problem we must study. The main purpose of the study of this paper is to explore the correlation between scale expansion and operation performance of retail companies and provide the theory reference for scale expansion of Chinese retail companies.First, the paper analyses and summarizes the general theories of scale expansion of enterprises, the theories of scale expansion of retail enterprises and theories about the boundary and scale of retail firms. Based on the theories, the hypotheses of the research are provided. Second, the paper describes and explores the present situation and problems of scale expansion of Chinese retail companies. And then regarding it as emphasis, the paper empirically analyzes the correlation of operation performance and scale expansion of listed retail companies from industrial characteristics, comparison of different types of retails and analysis of concrete example. The result shows that it is an uneconomic scale in listed retail companies, and there are differences for the effect of operation performance with different types of retails. Also, analysis of concrete example indicates that Chinese large-scale chain retail firms don't show better scale benefit by expanding their scales. Finally, several policy suggestions are put forward.Main innovations as follows: first, the paper empirically analyzes the correlation of operation performance and scale expansion of listed retail companies from industrial characteristics, comparison of different types of retail and analysis of concrete example. Second, the result, different from the research results obtained before, is found that it is an uneconomic scale in listed retail companies of China. |
