| 摘要 | ��
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1. Research Purpose
Corporate diversification strategy has been recognized as one of the key management strategies. On the one hand, diversified firms, on the one hand, can make utilization of surplus resources efficiently and also spread the risk from environmental changes. On the other hand, they would more likely to vulnerable to rising costs caused by inefficiencies and other drawbacks than focused firms.
Despite roller-costing oil prices and energy market environment changes, international oil majors have maintained remarkable growth for years through expanding into new markets and promoting new business. Korea energy firms who need to reinforce international competitiveness should learn from oil majors�� sustainable growth strategies like corporate diversification.
While, previous studies have been focused on relationship between corporate diversification and firms performance for a long time, little studies have been conducted on the effect of firms�� diversification on firm��s productivity and efficiency.
This study is to analyze the characteristics of diversification and its impact on the productivity and efficiency through econometrics model by type of energy firms listed in the U.S. market. The energy firms for this research include firms in Crude Petroleum and Natural Gas (SIC 1311), Mining (SIC 1000), petroleum refining (SIC 2911) and Electric services (SIC 4931)
This study can contribute to present strategic implications on conducting diversification activities to Korea energy firms.
2. Summary
This study classifies diversified firms as ones with two or more segments of business in different 3-digit US Standard Industrial Classification (SIC) industries.
After performing comparative analysis of diversification characteristics and business performance among major energy companies in four different industries, following characteristics are derived: First, while, the mining companies are mostly diversified by the kind of mining resources, most oil and gas companies are diversified by the vertical integrated segments, along with chemical business. Second, except for mining companies, operating revenue or profits of most energy companies are tend to be created from main segments on that the companies are focused. Third, most energy companies has been doing business in main segments or energy-related businesses, especially power (power) and the chemical sector.
In case of Korea energy firms, most public energy company like KNOC, KOGAS, and KEPCO are stand-alone firm or energy related diversified firm. Meanwhile, private downstream oil company like GS Caltex and SK are performing various businesses from non-oil sector like CES, city gas provider to non-energy sector like shipping.
In order to analyze the effect of energy firms�� diversification on their productivity and efficiency, econometric analysis of panel data is performed as following three model: first, comparing productivity and efficiency of between stand-alone and diversified energy firms, second, comparing productivity and efficiency of more related-diversified firms and third and last, comparing productivity and efficiency of diversified energy firms between high oil price period(1998-2007) and low oil price period(1988-1997).
Descriptive statistics shows that the more diversified firms, the larger number of employees, amount of sales, and firm size are. Also, diversified firms with less diversified segments and longer duration of diversification are more productive and efficient than vice versa. In terms with energy type, mining firms are more diversified firms (average holds 5.3 segments) than other types of energy firms (average holds 3.8 segments); also Petroleum Refining energy firms are rather more related-diversified firms than other types of energy firms.
3. Research Results and Policy Suggestions
This study shows that the effect of energy firm��s diversification on firm��s productivity and efficiency is different by type of energy industries. While more diversified firms in mining industry statistically significant increase in both their productivity and efficiency, more diversified firms in Electric services (Utility companies) decrease in both their productivity and efficiency. Diversified oil firms in Crude Petroleum and Gas or Petroleum refining industries more decrease in productivity than stand-alone firms. Interestingly, more related diversified oil firms proportionally are less decreasing in their productivity and efficiency than non-related diversified oil firms. It implies that the reduction in diversified oil firms�� performance is more likely to associated with their non-related diversified activities
After analyzing the third model, more diversified firms in mining industry statistically significant increase their productivity in low oil price period more than in high oil price period. Diversified oil firms in Crude Petroleum and Gas or Petroleum refining industries more decrease in productivity during high oil price period. It indicates that oil firms may be able to increase their productivity in high oil price period by focusing on main business rather than on other business
Based on these results, the following policy implications may be presented: Due to positive impact of diversification of international mining firms on their performance, Korea mining firms are worth benchmarking diversification strategy of international firms. Oil and gas firms are likely to enhance their productivity and efficiency when they would be focus on main business rather than the diversification of the business, especially, as the oil price is turn to be upward. Finally, it will be more appropriate management strategy for utility companies if they promote business growth through centralization of the main sectors rather than reckless business expansion using diversification.
116 pages, 24 refs., 41 tabs., 3 Figs., Language: Korean |
