An Empirical Study On The Impact Of Expectation Gap On Enterprise’s Cross-industry Transition

In recent years,China’s economic downward pressure is relatively large.With the advancement of the national supply-side reform and the in-depth industrial structure optimization,the speed of industrial clearing has begun to accelerate.However,due to the overcapacity of traditional manufacturing enterprises,lack of demand and insufficient power of technological innovation,many enterprises have suffered from declining performance and development.Since 2014,more and more enterprises(especially manufacturing enterprises)have taken the cross-industry transformation as one of the important strategic choices to get rid of the recession and gain sustainable competitive advantage.Since 2014,more and more enterprises(especially manufacturing enterprises)have taken the cross-industry transformation as one of the important strategic choices to get rid of the recession and gain sustainable competitive advantage.According to the theory of enterprise behavior,the gap between the actual business performance and expected performance(i.e.the gap of business expectation)will affect the strategic decision-making of enterprises and promote enterprises to take risk-taking behavior.In addition,due to the different characteristics of decision-makers,resource status and market environment of enterprises,the impact mechanism of business expectation gap on enterprise’s cross-industry transformation will also be very different,but the existing research has not systematically analyzed it.Therefore,from the perspective of performance feedback,this paper studies the relationship between enterprise expectation gap and cross-industry transformation and its regulation mechanism,which has certain theoretical and practical significance.Firstly,this paper makes a detailed analysis of the literature on business expectation gap,cross-industry transformation,executive heterogeneity and redundant resources,and finds out the shortcomings of existing research.On this basis,this paper synthetically uses the theory of enterprise behavior,resource-based theory and high-echelon theory,constructs the theoretical model of the gap of business expectations and the role of enterprise’s cross-industry transformation,and puts forward relevant research hypotheses.Secondly,using the balanced panel data of 1331A-share listed companies in China from 2014 to 2016,this paper empirically tests the research hypothesis with Logit binary selection model,and emphatically discusses the moderating effects of heterogeneity of management team,redundant resources and profit margin of newly entered industries on the above two relationships.Finally,according to the conclusions of the study,this paper puts forward relevant policy recommendations for the enterprise’s cross-industry transformation.The results of this study show that:(1)There is a positive correlation between the expected gap and the enterprise’s cross-industry transformation,that is to say,the larger the expected gap,the greater the possibility of enterprises to implement cross-industry transformation decision-making.(2)In the context of expectation gap,the heterogeneity of top management team’s functional background strengthens the positive impact of expectation gap on enterprise’s cross-industry transformation.(3)In the context of expectation gap,the redundant resources of enterprises enhance the positive impact of expectation gap on the cross-industry transformation of enterprises.(4)In the context of expectation gap,the average profit level of new entrants enhances the positive impact of expectation gap on cross-industry transformation.(5)The age,tenure and education level heterogeneity of the top management team are not significant for the adjustment of expectations and cross-industry transformation.