Diversification strategy, efficiency, and firm performance : Insight from emerging market

Gyan, Alex Kwaku and Rayenda Khresna, Brahmana and Abdul Karim, Bakri (2017) Diversification strategy, efficiency, and firm performance : Insight from emerging market. Research in International Business and Finance. ISSN 0275-5319 (In Press)

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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.

Item Type: Article
Uncontrolled Keywords: Diversification, Efficiency, Firm performance, Corporate strategy, research, Universiti Malaysia Sarawak, unimas, university, universiti, Borneo, Malaysia, Sarawak, Kuching, Samarahan, ipta, education
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions: Academic Faculties, Institutes and Centres > Faculty of Economics and Business
Faculties, Institutes, Centres > Faculty of Economics and Business
Depositing User: Ibrahim
Date Deposited: 21 Sep 2017 03:46
Last Modified: 21 Jun 2022 01:07
URI: http://ir.unimas.my/id/eprint/17543

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