Research On Non - Related Diversification Strategy Of HQ Enterprises In The Background Of Intergenerational Inheritance

Family private enterprises have become an important force in China’s social and economic development. The social and economic development has changed into a new stage of innovation-driven, and the family private enterprises are facing multiple strategic tasks such as enterprise transformation and upgrading, strategic entrepreneurship and intergenerational succession. With the opportunity of the intergenerational transmission, the problem that the family enterprise would like to build sustainable competitive advantage has become ubiquitous and urgent issue. Existing research about the corporate diversification, strategic transformation and ambidexterity doesn’t explain this phenomenon and provide inspiration for the family private enterprises strategy management practices. The current intergenerational transmission is presenting unrelated diversification characteristics. Therefore, based on the contingency theory, we would like to reveal the matching features between the diversification and explorative capability of the operation model, conceptual model about its impact on the enterprise performance and research proposition.Due to the exploratory study, we will use single case study approach. Through the HQ’s case research, we get the following conclusions:(1) in the traditional business dominated phase, the degree of the HQ’s unrelated diversification strategy is relatively lower and the performance and performance is lower. From traditional business to the early stage of the diversification, with the degree of the unrelated diversification strategy gradually improved and the intergenerational transmission, transition performance is gradually improved, but the overall transformation performance is not ideal; (2) in the early stage of the diversification, the explorative capability of the HQ’s operating mode and its transition performance is relatively lower. With the unrelated diversification strategy forward and the explorative capability improved during the intergenerational transmission process, the HQ’s transition performance is improving; (3) in the unrelated diversification stage, due to the higher degree of non-correlation with the stronger the explorative capability of the HQ’s operation mode, it gets the better transition performance. With the HQ’s intergenerational transmission forward, it will strengthen this relationship.This study can enrich the intergenerational transmission of the family private enterprises, diversification strategy and ambidexterity theory. We also give two advices for the managers to response the strategic renew and intergenerational transmission. Firstly, the manager should combine the process of the intergenerational transmission and update process and strengthen legitimacy of the second venture. Secondly, the manager should know that the explorative capability of the operation mode is the key factor to implement the unrelated diversification strategy, which includes separable organizational structure, diverse resources and competence, and inclusive corporate culture etc.