한국건설관리학회:학술대회논문집 (Proceedings of the Korean Institute Of Construction Engineering and Management)
- 한국건설관리학회 2003년도 학술대회지
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- Pages.88-95
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- 2003
Firms' Diversification Strategy and Long-Term Performance
초록
A firm's business composition and the sales volume of each business segment are subject to change depending, to a considerable extent, on the firm's business strategy. These changes were weighted and represented as a single index, referred to by scholars in strategic management and industrial organization research fields as 'firm entropy' then its impact on firms' profitability was assessed over twelve years. The performance differences between contractor and non-contractor firms, as well as focused and diversified firms, were compared through a Longitudinal Data Analysis Technique within a Hierarchical Linear Modeling framework. Hypothesis was formulated based on firm diversification theories and previous research findings. The hypothesis was tested according to the modeling outcomes, and implications are presented. The research findings indicate that the level of firms' long-term profitability supports the argument that the construction industry is highly competitive and mature.