An Empirical Research On The Relationship Between Refocusing And Enterprises Performance

At the end of the 20th century,many western enterprises had to face the crisis of diversification.Refocusing strategy obtained the attention of the theoretical and business circles. Based on the core business,spinning off those non-core businesses,enterprises can construct their core business system.This refocusing operation promotes the sharing of strategic resources,the accumulation of core competencies,achieves value creation and enhances enterprises performance.Following this theoretical analysis,this thesis attempts to explore the relationship between the extent of refocusing operation and the performance of Chinese enterprises,and to find the contingent factors that affect this relationship.This thesis makes use of the data and information from Shanghai listed companies in 2005-2007.Combining with the organizational structure of enterprises,this empirical research explore the relationship between the performance of Chinese enterprises and the extent of refocusing operation which is measured by complementary relatedness and vertical relatedness. The results show that the refocusing operation of Chinese enterprises needs the support of suitable organizational structure.When the enterprises adopt the organizational structure of CM-type,the complementary relatedness is positively associated with the performance.When the enterprises adopt other forms of organizational structure,the vertical relatedness is positively associated with the performance.So,there is the need for Chinese enterprises to consider the current situation and revolution of the organizational structure when implementing the refocusing operation.