Optimal Business Diversification and Firm Performance: The Role of Geographic Diversification in Chinese Tourism Firms

Chen Zheng, Henry Tsai, Jialin Wu

Research output: Journal article publicationJournal articleAcademic researchpeer-review

Abstract

This study aims to examine the relationship between business segment diversification and firms’ performance as well as the moderating role of the geographic diversification in the context of Chinese tourism industry. The analysis is based on data from annual reports of Chinese tourism firms over 8 years. This study affirms an inverted U-shape relationship and suggests the optimal level of business segment diversification to Chinese tourism firm performance. The positive effect of business segment diversification on Chinese tourism firm performance was supported in the group of firms with geographic diversification and was not supported in the group of firms without geographic diversification. The application of optimal business segment diversification and implications for Chinese tourism industry are discussed as well.

Original languageEnglish
JournalJournal of China Tourism Research
DOIs
Publication statusPublished - Jan 2023

Keywords

  • Business segment diversification
  • firm performance
  • geographic diversification
  • strategy
  • tourism industry

ASJC Scopus subject areas

  • Cultural Studies
  • Language and Linguistics
  • Linguistics and Language
  • Tourism, Leisure and Hospitality Management

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