The effects of the developmental stages and corporate characteristics of korea cement industry on diversification characteristics and performance were studied. Although diversification and performance are studied, the results were somewhat defective due to the lack of attempt to integrate the contingency model.
A case study was carried out to find the hypothesized relationship, and regression analysis was used to verify the relationship.
The major findings of this study are as follows:
1) Diversification characteristics were changed according to the developmental stages of industry. For diversification mode as a means of entering new business, the rate of internal development such as establishment of a firm declined, and diversify direction was changed from related to unrelated diversification.
2) Most of korean corporate had pursued the growth instead of profit as a diversification motive. Performance gap was not found against diversification direction and degree.
3) Diversification characteristics was shown to be dependent on corporate characteristics in the same industry. 4) The effective corporate had several unique diversification characteristics. Implications for managers and future research directions are suggested.
