Study On The Relationships Among Diversity Strategy, Technical Capacity And Corporate Performance

In the process of Chinese economy from planned economy to market economy,diversification strategy as an important expansionary strategy was widely adopted by enterprises.What the effect does the diversification strategy makes to the enterprise? The solution of this problem can let us clear the advantages and disadvantages of diversification strategy. Scholars used a variety of research methods to explore the relationship between diversification strategy and corporate performance in various ways. But they didn’t get consistent conclusion. This may be because they had chose different samples and ignore some influencing factors in their study.In order to make clear the direct and indirect effects of diversification on corporate performance, this paper, on the basis of previous studies, join the enterprise technical ability into the relationship between diversification strategy and corporate performance. The results of this paper can reflect the way diversification strategy works on the enterprise performance.In this paper, we explore the relationship among diversification strategy, technical capacity and enterprise performance by collecting 138 manufacturing listed companies of china and using Stata11.0,Amos17.0 and other statistical analysis software. In the research process, we use Wrigley’s specialization ratio and related ratio to divide diversification into different types. On the basis of this classification, we compare the impact on enterprise performance of the four different types of diversification strategy. At the same time, we use diversification strategy, technical capacity and enterprise performance as the independent variable and dependent variable in the same regression model to test the intermediary role of technical capacity plays in the relationship between diversification strategy and enterprise performance. Compared with other scholars used a single index to measure the corporate performance, this paper studies two aspects of the performance: enterprise profitability and growth ability, and we also use ROA and ROS to measure profitability, and use AIR and SIR to measure growth ability.The empirical results show that implementation of the diversification strategy is prejudice to corporate performance, and is also not conductive to enhance technical capacity; There is a difference among the impact of the four types of diversification strategy on the technical capacity;The research on the technical capacity show that the improve of enterprise technical capacity canpromote the growth of corporate performance; Technical capacity also has a significant mediation effect on the relationship between diversification strategy and enterprise performance.