The relationship between diversification strategy and performance of business groups in developing countries

Undoubtedly, diversified business groups are the most important actors of the business world in developing countries. Therefore, the purpose of this study is to investigate whether there is a significant difference between the related diversification strategies and unrelated diversification, and the performance values of the business groups ROA, ROS and ROE. In the research, a model was developed that indicates the relationships between the diversification measure and the business group performance indicators (ROA, ROS, and ROE). In order to test the relationships in this model, at ISE (Turkish Business Groups), BSE SENSEX (Indian Business Groups), JSE (South-African Business Groups), BM&F Bovespa (Brazilian Business Groups), MİCEX-RTS (Russian Business Groups), KLCI (Malaisian Business Groups) and IDX (Indonesian Business Groups). Analyzes were made using the Mann-U Whitney method. According to the data collected, it is understood that the number of unrelated growing business groups in developing countries is higher than the related growing groups. When the findings obtained from the results of the analyses are examined, it is understood that there is no significant difference between the related and unrelated diversification measure and the performance indicators (ROA, ROS, and ROE). Keywords: Diversification strategic, emerging countries, business groups.