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...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Elsevier Ltd
2017
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| Subjects: | |
| Online Access: | http://ir.unimas.my/id/eprint/17543/ http://ir.unimas.my/id/eprint/17543/1/Diversification%20Strategy.pdf |
| _version_ | 1848838309463195648 |
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| author | Gyan, Alex Kwaku Rayenda Khresna, Brahmana Abdul Karim, Bakri |
| author_facet | Gyan, Alex Kwaku Rayenda Khresna, Brahmana Abdul Karim, Bakri |
| author_sort | Gyan, Alex Kwaku |
| building | UNIMAS Institutional Repository |
| collection | Online Access |
| description | 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. |
| first_indexed | 2025-11-15T06:53:30Z |
| format | Article |
| id | unimas-17543 |
| institution | Universiti Malaysia Sarawak |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T06:53:30Z |
| publishDate | 2017 |
| publisher | Elsevier Ltd |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | unimas-175432022-06-21T01:07:18Z http://ir.unimas.my/id/eprint/17543/ Diversification strategy, efficiency, and firm performance : Insight from emerging market Gyan, Alex Kwaku Rayenda Khresna, Brahmana Abdul Karim, Bakri HD28 Management. Industrial Management 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. Elsevier Ltd 2017 Article PeerReviewed text en http://ir.unimas.my/id/eprint/17543/1/Diversification%20Strategy.pdf 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) http://www.sciencedirect.com/science/article/pii/S0275531916303099 DOI: 10.1016/j.ribaf.2017.07.045 |
| spellingShingle | HD28 Management. Industrial Management Gyan, Alex Kwaku Rayenda Khresna, Brahmana Abdul Karim, Bakri Diversification strategy, efficiency, and firm performance : Insight from emerging market |
| title | Diversification strategy, efficiency, and firm performance : Insight from emerging market |
| title_full | Diversification strategy, efficiency, and firm performance : Insight from emerging market |
| title_fullStr | Diversification strategy, efficiency, and firm performance : Insight from emerging market |
| title_full_unstemmed | Diversification strategy, efficiency, and firm performance : Insight from emerging market |
| title_short | Diversification strategy, efficiency, and firm performance : Insight from emerging market |
| title_sort | diversification strategy, efficiency, and firm performance : insight from emerging market |
| topic | HD28 Management. Industrial Management |
| url | http://ir.unimas.my/id/eprint/17543/ http://ir.unimas.my/id/eprint/17543/ http://ir.unimas.my/id/eprint/17543/ http://ir.unimas.my/id/eprint/17543/1/Diversification%20Strategy.pdf |