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Author: Yanghong Hu
Publisher:
ISBN:
Category : Diversification in industry
Languages : en
Pages : 106
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Book Description
Reviewing literature of product diversification in the large emerging economy China, this paper finds that prior studies related to the effect of product diversification on firm performance (PD-P, hereafter) in China have not yet paid sufficient attention to two important aspects. First, just as national institutions among countries are heterogeneous, sub-national institutions in China also vary greatly. Assuming homogeneous sub-national institutions in the large emerging economy China is at odds with reality. Studying whether PD-P in China will be contingent on sub-national institutional development will help to shed lights on PD-P in China and other emerging economies. Second, in China, state ownership is an important institutional context for individual firms. Prior research has not yet investigated state ownership of individual firms in studying PD-P in China. It would be of theoretical significance to examine whether state-owned enterprises can better take advantage of sub-national institutional development to improve firm performance than non-state-owned enterprises. Considering variation in sub-national institutions within a large emerging economy, this paper also extends the approach of using an institution-based view of business strategy to shed further lights on PD-P. Reviewing extensive literature of product diversification, this paper finds that there has been lack of consensus on PD-P. An institution-based view of business strategy is useful to reconcile divergent findings on PD-P by considering institutional environments in which firms adopt product diversification. Relatively consistent findings are that product diversification has a positive effect on firm performance in emerging economies and has a negative effect on firm performance in developed economies. This paper goes further to explore the influence of sub-national institutions on PD-P in emerging economies. This paper uses a sample of 37,856 observations of 124 insurance firms in 31 provinces of China over the period from 2005 to 2014. It finds that in China, product diversification of a firm in a region has a positive effect on firm performance in that region, but this positive effect holds true only in regions with a high instead of low level of sub-national institutional development. Furthermore, the positive moderating effect of sub-national institutional development on PD-P is context-specific and stronger for firms with a high level of state ownership.
Author: Yanghong Hu
Publisher:
ISBN:
Category : Diversification in industry
Languages : en
Pages : 106
Get Book Here
Book Description
Reviewing literature of product diversification in the large emerging economy China, this paper finds that prior studies related to the effect of product diversification on firm performance (PD-P, hereafter) in China have not yet paid sufficient attention to two important aspects. First, just as national institutions among countries are heterogeneous, sub-national institutions in China also vary greatly. Assuming homogeneous sub-national institutions in the large emerging economy China is at odds with reality. Studying whether PD-P in China will be contingent on sub-national institutional development will help to shed lights on PD-P in China and other emerging economies. Second, in China, state ownership is an important institutional context for individual firms. Prior research has not yet investigated state ownership of individual firms in studying PD-P in China. It would be of theoretical significance to examine whether state-owned enterprises can better take advantage of sub-national institutional development to improve firm performance than non-state-owned enterprises. Considering variation in sub-national institutions within a large emerging economy, this paper also extends the approach of using an institution-based view of business strategy to shed further lights on PD-P. Reviewing extensive literature of product diversification, this paper finds that there has been lack of consensus on PD-P. An institution-based view of business strategy is useful to reconcile divergent findings on PD-P by considering institutional environments in which firms adopt product diversification. Relatively consistent findings are that product diversification has a positive effect on firm performance in emerging economies and has a negative effect on firm performance in developed economies. This paper goes further to explore the influence of sub-national institutions on PD-P in emerging economies. This paper uses a sample of 37,856 observations of 124 insurance firms in 31 provinces of China over the period from 2005 to 2014. It finds that in China, product diversification of a firm in a region has a positive effect on firm performance in that region, but this positive effect holds true only in regions with a high instead of low level of sub-national institutional development. Furthermore, the positive moderating effect of sub-national institutional development on PD-P is context-specific and stronger for firms with a high level of state ownership.
Author: Anqi Shi
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
In recent years, diversification has become a common strategy used by companies in emerging markets. It is believed that diversification operations could help firms get better performance and gain higher profits from a larger internal market. However, contradictory results reveal that diversification empirically hurts firm value and other studies show the relationship between diversification and firm performance is complicated that should be studied in separate industries. The opinion is inconclusive on this topic. This study developed a performance index to see how diversification impact on various perspectives of firm performance. Conclusions as follow. International diversification has a positive correlation with firm performance in several aspects whereas industrial diversification helps firms' developing ability. However, due to the unavailability of long-term data, we can not rule out the possibility that well-performed firms go for international diversification. Besides, The relationship between diversification and firm performance affected by different industries. The agricultural and natural resource firms tend to exceed manufacturing firms in the efficiency aspects whereas manufacturing companies tend to have advantages in the sustainability aspect compared to service firms. There is also evidence showing that the largest shareholders' holdings rates have a positive impact on firm performance and state-owned rate has a negative relation with firm performance.
Author: Matthias Knecht
Publisher: Springer Science & Business Media
ISBN: 3658026774
Category : Business & Economics
Languages : en
Pages : 365
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Book Description
The decision to diversify lies at the core of corporate strategy and is one of the most important decisions for top management. Matthias Knecht introduces a new perspective on corporate diversification that extends the academic discussion and reveals substantial new insights with regards to one of the most pressing questions in strategic management: what makes a diversification strategy successful? The author introduces the dynamism of industries as the dominant force in the firm’s environment that influences the organization on all levels. Due to strategic, organizational, and managerial similarities of businesses competing in similar dynamic environments, synergistic benefits and superior economic performance can be realized through the combination of dynamic-related businesses in the corporate portfolio. This study provides a quantitative, multidimensional operationalization of industry dynamism and an in-depth assessment of the dynamism of a wide range of industries. At the core of the study lies the investigation of the performance impact of dynamic-related diversification strategies. The results provide new insights into successful portfolio construction strategies in the face of today’s dynamic environments.
Author: Paul Patterson
Publisher:
ISBN: 9780864183170
Category : Market surveys
Languages : en
Pages : 20
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Book Description
Author: George S. Yip
Publisher: MIT Press
ISBN: 0262534754
Category : Business & Economics
Languages : en
Pages : 303
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Book Description
A book for everyone who does business with China or in China. The history-making development of the Chinese economy has entered a new phase. China is moving aggressively from a strategy of imitation to one of innovation. Driven both by domestic needs and by global ambition, China is establishing itself at the forefront of technological innovation. Western businesses need to prepare for a tidal wave of innovation from China that is about to hit Western markets, and Chinese businesses need to understand the critical importance of innovation in their future. Experts George Yip and Bruce McKern explain this epic transformation and propose strategies for both Western and Chinese companies. This book is for everyone who does business with China or in China, or is interested in the development of the world's fastest-growing economy. Western CEOs can learn from Chinese companies and can create an effective innovation process in China, for China and the world. Chinese CEOs can benefit from understanding the strategies of their peers as they strive to enter foreign markets. And all Western businesses should prepare for disruption from their new competitors. Yip and McKern provide case studies of successful firms, outline ten ways in which the managerial and innovative capabilities of these firms differ from those of Western firms, and describe how multinationals doing business in China can become part of the Chinese ecosystem of new knowledge and technology. Yip and McKern argue that these innovation capabilities will be the basis for creating world-class products and services to meet the challenges of a new era of global competition.
Author: Paul W. Dobson
Publisher: John Wiley & Sons
ISBN: 1405142367
Category : Business & Economics
Languages : en
Pages : 264
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Book Description
This highly popular introduction to strategic management has nowbeen revised to take account of the latest developments in thefield. New edition of a highly popular introduction to strategicmanagement. Provides a clear framework for understanding the issues incorporate strategy, supported by current case examples. Revised to take account of the latest development in thefield. Now features twelve new cases. Includes new chapters on issues relating to the resource-basedview of the firm, innovation, learning, and the ‘neweconomy’. Includes a new concluding chapter looking at present and futureissues in strategic management. Continues to combine the latest management concepts with andemphasis on current business applications and implementation.
Author: Ralph Biggadike
Publisher:
ISBN: 9780000793034
Category :
Languages : en
Pages :
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Book Description
Author: Lois M. Shelton
Publisher: Palala Press
ISBN: 9781378150924
Category : History
Languages : en
Pages : 40
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Book Description
This work has been selected by scholars as being culturally important, and is part of the knowledge base of civilization as we know it. This work was reproduced from the original artifact, and remains as true to the original work as possible. Therefore, you will see the original copyright references, library stamps (as most of these works have been housed in our most important libraries around the world), and other notations in the work. This work is in the public domain in the United States of America, and possibly other nations. Within the United States, you may freely copy and distribute this work, as no entity (individual or corporate) has a copyright on the body of the work. As a reproduction of a historical artifact, this work may contain missing or blurred pages, poor pictures, errant marks, etc. Scholars believe, and we concur, that this work is important enough to be preserved, reproduced, and made generally available to the public. We appreciate your support of the preservation process, and thank you for being an important part of keeping this knowledge alive and relevant.
Author: Peter J. Buckley
Publisher: Springer
ISBN: 1137402385
Category : Business & Economics
Languages : en
Pages : 290
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Book Description
The Multinational Enterprise and the Emergence of the Global Factory brings together research papers authored by Peter J. Buckley, focusing on three of the most important empirical and theoretical issues in the global economy: the rise of the 'global factory'; the growth of FDI from emerging economies; recent developments in the theory of IB.
Author: Robert E. Hoskisson
Publisher: Oxford University Press
ISBN: 0195360117
Category : Business & Economics
Languages : en
Pages : 223
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Book Description
Large, diversified firms face unique challenges as they compete worldwide, and corporate restructuring is one way multinationals strive for competitive advantage. Weighing the pros and cons of a variety of approaches to restructuring, Downscoping offers executives a clear, strategic path through the maze. The authors show that when a multinational conglomerate fails to compete effectively, too much diversification may be the culprit. Whether the result of weak corporate governance or poor corporate strategy, over-diversification can make managers, unfamiliar with some of the markets in which they compete, opt for safety over innovation. This risk-aversion and lack of long-range commitment to innovation lead inevitably to stagnation over the longer term. The answer is not downsizing--closing offices and laying off personnel--but downscoping: a strategic approach to restructuring. The options include incentive and compensation adjustments for executives, leveraged buy-outs and capital structure changes, focusing on core skills, diversifying internationally while focusing on businesses in which a firm has strong competencies, and buying and selling mature businesses where product development is not a great concern. Regardless of the approach, executives must exercise strategic leadership during and after restructuring, including providing strategic direction, exploiting core competencies, developing human capital, and sustaining the corporate culture. Based on systematic research rather than casual observation, Downscoping provides a strong description of restructuring alternatives and their resulting tradeoffs. Its specific guidelines for maintaining competitiveness will be essential reading for managers involved in corporate restructuring.
