Institutional Root and Paradigm Construction Research on Chinese Enterprise Diversification in Transitional Period

Classic strategic choice theory is the strategic concept based on industry status and resource base. The strategic concept based on institution foundation is the new trend from the strategic research. The institution, as the game rule, has an important and deep influences on the enterprise strategic behavior. The background characteristic, being in the transitional period, results in a special behavior in growth strategy orientation of Chinese enterprises diversified operation of enterprises is very popular. From the perspective of institution, this article analyzes the underlying reasons and history rationality why Chinese enterprises generally carry out diversified operation. Based on the paradigm improvement of Industrial structure-conduct-performance (SCP), this article builds analytical framework of institution-conduct-performance (ICP) in diversification strategy research field and provides guidance advice on the further healthy development of enterprise diversification.