A Study On The Diversification Strategy Choice Of China’s Electrical Household Appliance Listed Companies Based On The Resource View

Should the enterprise set foot in the new greater profit space or expand indifferent fields of original industry when facing the diversification strategy choice?Resource-Based Theory argues that it should depend on the resources the enterprisehad and controlled at that time. On the basis of summarizing the related research andliteratures on resource theory and diversification strategy by foreign and domesticscholars, we have a relatively systematic research for the internal relevance problembetween resources of the enterprise and diversification strategy type.This paper chose China’s household electrical appliance listed company assample. Firstly, this paper analyzed the status and cause of diversification strategy ofChina’s Household Electrical Appliance Listed Companies; Next, according toexisting theories and the industry characteristics of China’s Household ElectricalAppliance Listed Companies, this paper proposed our research hypothesizes, andbuilded a multivariate regression model about the relationship between enterpriseresources and the choice of diversification strategy type. Then, this paper used Spsssoftware to make regression analysis by collected data and got the conclusions.Finally, through case of multiplication expansion of Qingdao Haier,this paper furtherstudy how enterprise resource act upon diversification strategies choice, thusinfluencing enterprise business performance, making research conclusion morecomprehensive.The Regression results showed that, tangible resources have a remarkablynegative relationship with two kinds of diversification strategy type ofCHEA.Co.LTD, Whether related or unrelated diversification strategy; The technicaltalent proportion and Knowledge level of human resource have the same impact onthe diversification type of CHEA.Co.LTD, having a negative relationship with DR,while having a positive relationship with DU; Goodwill intangible resource has aremarkably positive relationship with DR, while having a negative relationship withDU, but the negative relationship is not remarkable, intangible assets have nosignificant correlation with two kinds of diversification strategy type ofCHEA.Co.LTD. Financial resources have a significantly negative relationship withDU, while have a positive relationship with DR, but the positive relationship is notremarkable. The research results also reveal that company scale and listed years havethe same impact on the diversification type of CHEA.Co.LTD, having a negative relationship with DR, while having a positive relationship with DU. In the modelexamination of four kinds of resource for each and the diversification strategychoice,found that the invisible resources is the primary factor to explain the relateddiversification expansion, while the human resource is the primary factor to explainthe unrelated diversification expansion.