The Study On The Impact Of Diversification Strategic Types On Enterprise Performance

As a development strategy widely adopted by modern enterprises,diversification has been an effective way for enterprises to achieve rapid expansion of asset scale and rapid growth of economic profits since its introduction in the 1950 s.However,firms have been facing the problem of choosing an appropriate diversification type in the specific implementation process.Previous scholars mainly used mature markets in developed countries as the research object of diversification type,and obtained the conclusions that related diversification can improve corporate performance.But for the emerging market like China which is in the transition period,the theoretical and practical departments have not formed a unified opinion on the relationship between diversified strategy types and corporate performance.In particular,enterprises have different characteristics that can influence the strategic choice of the company at different stages of life.However,the current academic community has not discussed the relationship between diversified strategy types and corporate performance based on the enterprise life cycle.Therefore,it is necessary to study the relationship between diversified strategy types and firm performance in light of China's actual situation,and analyze the specific impact of diversified strategy types on firm performance from the perspective of enterprise life cycle,which is suitable for Chinese enterprises to choose appropriate diversification according to their own development stages.It is of great guiding significance to transform the type of strategy to achieve maximum corporate performance.Therefore,this paper takes Chinese manufacturing enterprises that are undergoing development and transformation as the research object,and analyzes the impact of diversified strategy types on corporate performance based on the perspective of enterprise life cycle.Specifically,this paper first briefly introduces the research background and significance,and combs the existing relevant literature to review the shortcomings of the existing research.On this basis,this study comprehensively studies the theoretical mechanism of diversified strategy types acting on corporate performance from the perspective of the benefits and costs of diversification.In particular,this paper analyzes the development characteristics of enterprises under different life stages from the perspective of enterprise life cycle and the impact of corporate diversification strategy types on performance under different stages.Finally,in order to verify the specific impact of the enterprise life cycle on the relationship between diversified strategy types and firm performance under the current China's economic system,this paper takes manufacturing enterprises which issued stocks in the Chinese stock market as the research object for empirical analysis.Through theoretical analysis and empirical test,this study draws the following conclusions:(1)In general,the implementation of relevant diversification strategy is more conducive to the performance improvement of listed manufacturing enterprises in China,and the stronger the correlation of business units,the better the performance of enterprises,while the stronger the non-correlation of business units,the more likely the performance of enterprises will be impaired,but the impairment effect is not significant.(2)For enterprises in growth or recession,the related diversification has a significant positive relationship with corporate performance,while the unrelated diversification has a significant negative relationship with corporate performance.(3)For mature enterprises,the related diversification is negatively correlated with enterprise performance,while the unrelated diversification is positively correlated with enterprise performance,but the overall effect is not significant.Therefore,this paper holds that enterprises should first weigh the costs and benefits of different types of diversification according to their own internal and external environment,actively implement the relevant diversification strategy,and prudently implement the non-related diversification strategy in the process of diversified production and operation.At the same time,enterprises need to further integrate their own development stages and rationally adjust their diversification strategy types.When they are in the stage of growth or recession,enterprises should actively choose relevant diversification strategies that are conducive to cultivating core competitive advantages,and should not rush into industries with large leaps and bounds to carry out non-related diversification production and management.When entering the mature stage,enterprises should further combine their own actual situation and the development characteristics of their industries,and properly implement the non-related diversification strategy.