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Directors' behavior in adopting a diversification strategy in unlisted companies

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  • Olivier BAINONE HOUZILBE

Abstract

The purpose of this study is to analyze the behavior of managers in the adoption of the diversification strategy and the effects of these behaviors on strategic implementation. We studied four director behaviors: perceived job security, level of engagement, required pay, and promotion. Using the analysis of variance, the results show that the nature of diversification influences only the level of commitment of the directors and the remuneration they require to the adoption of the diversification strategy. On the other hand, it appears that, through the regression analysis, all these behaviors have a positive effect on the degree of success of the strategic implementation, suggesting that the evaluation of the diversification project must take into account, not only the real costs, but also the possible costs due to the dissatisfaction of the functional and regional managers of the company.

Suggested Citation

  • Olivier BAINONE HOUZILBE, 2019. "Directors' behavior in adopting a diversification strategy in unlisted companies," Journal of Academic Finance, RED research unit, university of Gabes, Tunisia, vol. 10(1), pages 50-63, June.
    • Handle: RePEc:jaf:journl:v:10:y:2019:i:1:n:167
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    File URL: https://www.scientific-society.com/AF/article/view/167
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    References listed on IDEAS

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    1. Denis Chênevert & Michel Tremblay, 2001. "Comparaison des politiques de rémunération en fonction des stratégies organisationnelles," CIRANO Working Papers 2001s-35, CIRANO.
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    More about this item

    JEL classification:

    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration
    • N8 - Economic History - - Micro-Business History
    • G3 - Financial Economics - - Corporate Finance and Governance

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