Directors' behavior in adopting a diversification strategy in unlisted companies
DOI:
https://doi.org/10.59051/joaf.v10i1.167Keywords:
strategic diversification, security of employment, level of commitment, remuneration required, promotion to the post.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.
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Copyright (c) 2019 Georges Kriyoss MFOUAPON, Olivier BAINONE HOUZILBE
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