THE STUDY FOR BRICOLAGE BEHAVIOR LEADING TO CORPORATE DIVERSIFICATION MOTIVE

This study examined corporate diversification stratégies adopted under resource-constrained conditions in addition to those spurred by market influence, operational risk, and resource allocation failure. Three different motivations were considered for corporate diversification from the perspective of resource bricolage. First, firms faced with economic crises combine available resources, such as idle resources and family member expertise, to establish ground breaking and innovative businesses that enable entering new markets and expanding into new industries. This facilitates the survival of the firms. Second, firms aim to fulfill corporate social responsibility by applying wastes, which otherwise require additional processing fees, to create new products. This enables not only decreasing the colt of waste processing but also expanding the existing businesses. Although not all new businesses developed using this method can produce substantial results, they can be addressed in corporate social responsibility annual reports, thus influencing the crucial clients of the existent businesses. Finally, the utilization of resource slack promotes corporate diversification.