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The Impact of Small and Medium Enterprises of Business Diversification on Corporate Performance: Focused on the Moderating Effect of Perceived Possibility (Policy Finance, Management Support)  

Kim, In Kwon (Dept. of Information Management, Graduate School of Venture, Hoseo University)
Huh, Chul Moo (Dept. of Information Management, Graduate School of Venture, Hoseo University)
Publication Information
Asia-Pacific Journal of Business Venturing and Entrepreneurship / v.13, no.4, 2018 , pp. 129-137 More about this Journal
Abstract
With the advent of the 4th Industrial Revolution, destructive technologies have become more frequent and companies are facing difficulties in survival with existing technologies, and companies are pursuing the survival or growth of businesses through business diversification as a countermeasure. There is a lack of research on the effects of perceived possibility of policy finance and management support, which act as a driving force of corporate growth, on firm performance. The purpose of this study is to demonstrate the effect of business diversification on the performance of SMEs. For this study, data were collected from 525 employees of 20 SMEs. Statistical analysis was performed using regression analysis. First, the product diversification and market diversification, which are independent variables of business diversification of SMEs, have a positive (+) influence on firm performance. Second, it is shown that product diversification, which is an independent variable, is controlled by the possibility of perceiving as a controlling variable in the effect of product diversification, which is a dependent variable, while market diversification during business diversification is not controlled by perception appear. This analysis suggests that SMEs need product diversification to create corporate performance. After discussing the above conclusions and implications, the direction of the research for the follow - up study was suggested.
Keywords
SMEs; Business diversification (product diversification, Market diversification); Perceived possibility (strategy establishment, R & D); Corporate performance;
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