|
Not only in the theory area but also in the business area, the diversification is always one of topics which most receives disputed.Under the specific historical condition, the diversification once gave the companies in the west countries the huge income.It was just this reason that takes many companies into diversification without Giving it careful consideration.However, when facing the case of failure one after another, the people started to awake, and began to think diversification much more carefully than before.Enterprise’s diversification should base on theirs core competence, this research just takes this viewpoint as the basic point.According to the sample of listed companies in manufacture industry, we makes an empirical analysis on whether the diversification which based on core competence is beneficial to the improvement of business performance. In this paper, we establish three models which include diversified level, core competitiveness and business performance, also, we divide the level of diversification into related diversification and non-related diversification, besides, we build submodels of the core competence which contains the manage core competence, market core competence and financial core competence.The results show that: firstly, based on the general model, we draw a conclusion that show inverted u-shaped among the relationship of core competence, business performance and the degree of diversification, and the core competence can significantly improve the business performance.Secondly, we make a conclusion that related diversification have positive effect on the management, market and financial of core competence from submodel A, but it is not significant.Thirdly, from the submodel B, we find that the manage core competence and the market core competence have a significant promotion effect on profit index, growth index and scale index, however, the finance core competence can’t significantly influence the scale index.Fourthly, as a result of submodel C, that related diversification have a significant promotion effect on profit index, growth index and scale index, whereas, non-related diversification cause significant and negative impact on profit index and scale index, but not significant on growth index.
|