Diversification strategy, efficiency, and firm performance : Insight from emerging market
We investigate further the inconsistencies of the diversification-performance link by introducing efficiency as moderating factor. A data of 319 firms was used to conduct a panel data analysis excluding the financial sector industries and the results show three important findings. First, industrial...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Elsevier Ltd
2017
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| Subjects: | |
| Online Access: | http://ir.unimas.my/id/eprint/17543/1/Diversification%20Strategy.pdf http://ir.unimas.my/id/eprint/17543/ http://www.sciencedirect.com/science/article/pii/S0275531916303099 |
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| Institution: | Universiti Malaysia Sarawak |
| Language: | English |
| Summary: | We investigate further the inconsistencies of the diversification-performance link by introducing efficiency as moderating factor. A data of 319 firms was used to conduct a panel data analysis excluding the financial sector industries and the results show three important findings. First, industrial diversification shows a significant contribution in performance improvement while international diversification shows no effect on performance. Yet, international-conglomerate shows a significant negative relationship with performance. Meanwhile, the efficiency results are contrary to our conjecture. We find that efficiency is a factor to enhance performance, but it is not the moderating variable on the diversification-performance link. This implies that the efficiency of the firm has no connection with the link between diversification and performance. © 2017 Elsevier B.V. |
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