Diversification of Business Group

• Main Authors: Shan-Huei Wang, 王珊彗
• Other Authors: Andy Ruey-Shan Guo
• Format: Others
• Language: en_US
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/6wpwf4

博士 === 國立臺灣大學 === 商學研究所 === 106 === The purpose of this thesis is to explore the relationship between business groups’ diversification and their performance, and two studies are included. The first study explores the relationships among capabilities, industry diversification strategic choice and performance. The second study focus on how power distance diversification affects groups’ performance as their internationalization process. The abstract of each study is summarized as following: Study 1: Based on the resource-based perspective, this study plans to examine the relationships among business group’s capabilities, industry diversify strategic choice, and business group performance. This study demonstrates how different types of capabilities in terms of marketing, operational, and R&D capabilities affect the industry diversification strategic choice and business group performance. By using data from the Top 100 business groups in Taiwan, this study expects that business groups are more likely to adopt a high level of industry diversification strategy when they have better marketing and operational capabilities, conversely, they are more likely to adopt a low level of industry diversification strategy when they have superior R & D capability. Besides, on average, high industry diversification groups perform better than low ones after controlling the endogeneity issues. In addition, business groups achieve a better performance if their industry diversification strategy matching the conditions they encounter. This study plans to show that business groups’ performance from their industry diversification strategy are not universal but depend on different types of their capabilities. Study2: This study examines the effects of portfolio of power distance, shareholding of government and shareholding of foreign institution on business group performance. This study suggests that there is an S-shaped relationship between power distance diversification and business group performance. Performance decreases in the low level of power distance diversification, increases in the moderate level of power distance diversification, and decreases again in the high level of power distance diversification. In addition, shareholding of government is hypothesized to have a negative moderating effect on the S-shaped relationship; while shareholding of foreign institution is hypothesized to have a positive moderating effect on the S-shaped relationship. Top 100 business groups in Taiwanese during a 14-year period are collected to test the hypotheses. The empirical findings support all the main hypotheses of this study. This study also provides important theoretical and managerial implications for strategic and international business management.