A Study On The Determinants Of Diversification Strategy Based On The Features Of Corporate Top Management Teams

As the theory of Upper Echelons and the theory of top management team gradually received the attention of the majority of scholars,the research focus of scholars gradually shifted from a single manager or leader of the enterprise to the entire management team.The impact of the top management team on the development of the enterprise cannot be ignored.This article first briefly describes the research background,the research purpose,the specific content of the research,and the technical route of the research in the introduction part.The elaboration and development of theories of high-level echelon theory and diversification strategy were expounded.Then,based on the analysis and analysis of relevant theories,hypotheses were proposed and the conceptual model of this paper was determined.Then design the selected variables and measure the variables.Taking the listed company in 2015 as a sample,the relationship between the characteristics and diversification of the company's top management team is discussed.This article obtains all the listed companies in 2015 in the Taian'an database,and after excluding the non-manufacturing companies,they obtain the 2015 annual reports of the sample companies through Sina Finance,Phoenix,com,and Reith.com database,eliminating incomplete or incorrect data.The company extracts the variable data needed for the study.After using SPSS 22.0 for correlation analysis,descriptive statistical analysis,binomial regression analysis,and multiple regression analysis,the hypothesis was tested.Find the following findings:(1)The lower the proportion of male members in the top management team is,the more they tend to diversify.(2)In the top management team,companies with a higher proportion of political background members tend to choose diversification.(3)In the top management team,the longer the top executives are,the more likely they are to choose diversification.(4)The higher the average executive education team is,the more companies tend to choose diversification.Based on the above findings,the article proposes the following suggestions in hopes of providing certain references for Chinese companies in building a diversification strategy and establishing a top management team:(1)When a listed company implements a diversification strategy,it should pay attention to the gender ratio of the company's top management team.Try to keep female executives in the top management team.In terms of how to increase the participation of women executives,they can learn from Western countries.(2)Although academic qualifications are not the only criteria for testing individual capabilities,when listed companies implement diversification strategies,they should pay attention to the educational level of the members of the top management team.Pay attention to the formal educational qualifications as the inspection criteria for recruitment.(3)When a listed company implements a diversification strategy,it should ensure that there are political executives in the top management team members.In this way,it is possible to cope with the many destabilizing factors in the diversification of enterprises.Corporate executives should also pay attention to how to establish a good "entry"with the government to give resources that will help the company's development.However,managers cannot ignore that top executives with a political background are not the sole criterion for enterprises to obtain social resources.Enterprises should rationally treat the role of the political background for enterprises.(4)When a listed company implements a diversification strategy,it should pay attention to the term of the top management team and do not frequently change the members of the top management team.At the same time,research shows that executives with too long terms of office will have reliance on the company' s existing strategies or policies,gradually satisfy the status quo,and are reluctant to diversify.Therefore,when the company builds its top management team,it must also avoid the disadvantages caused by the long term of top executives.Finally,at the end of the paper,based on the research conclusions,this article is summarized.The lack of research and research prospects are proposed.