The Specific Assets And Diversification Synergy Effects

With the development of world economy, more and more enterprises choose to be diversified groups, which make diversification synergy effects an important research point. Diversified groups, many of which make great contribution to the increase of job chances, the improvement of research ability, and the appearance of new products, are the main power ofGDP growth. However, there exists a phenomenon that some of the diversified enterprises succeeded, while others failed. The reason maybe varied. But one of the most important reasons is the enterprises carry out the diversified strategy in a wrong way under the pressure from government and economy circumstances. Therefore, many enterprises haven’t considered the relationship between diversification and synergy effect before they plan the diversification strategy.Since the relationship between synergy effect and diversification strategy, many researchers hold the opinion that synergy effect is the only target that diversified groups search for.However, the debate on how to realize the synergy effect is still continuing. In some researchers’ opinion, it’s the resources shared by all the business units that act on synergy effect.While other researchers think it is the organizational operate ability of enterprises that makes synergy effects act.The specific assets theory is widely used in transaction cost economy, while has not been expanded to synergy effect theory. Although the specific asset theory hasn’t been used inthe diversification synergy effect’s field, it can explain the key point of synergy effects’ action behavior in a reasonable way. From the viewpoint of asset specificity, specific assets’ value will be deployed after changing usage method. Thus the resources shared by former business units cannot be shared by the new business unit, which goes against the target of synergy effect.Meanwhile, without a standard norm to calculate the efficiency ratio of different units in diversified group, enterprise handlers can hardly control the degrees of synergy effects. Therefore, this essay try to explore the impact specific assets made on synergy effects with the analysis of products-sharing ratio in different units of diversified group. With this research, on one hand, specific assets theory can be expanded; on the other hand, different research aspects can be developed to synergy effects.