Diversification and Performance Relationship in Turkey: A study of companies listed on Istanbul Stock Exchange

Chahrazad Aarab; İhsan Yiğit

Article Details

Diversification and Performance Relationship in Turkey: A study of companies listed on Istanbul Stock Exchange

Authors:

Chahrazad Aarab | İhsan Yiğit

Publisher:

Kocaeli University

Main Topics:

Politika ve Yönetim (Diğer)

Journal:

Kocaeli Üniversitesi Sosyal Bilimler Dergisi Vol.1 Issue 49, pp.52-65

Document Type:

Article

Publication Date:

7/2025

Document Language:

English

Document ID (Org No.):

2001354469

pISSN:

1302-6658

Keywords:

Abstract:

 Diversification strategy is a critical decision for firms aiming to grow, reduce risk, and enhance competitive advantage. The purpose of this study is to explore the relationship between diversification strategies and firm performance in Turkey as an emerging country. The study examines empirical data through statistical analysis. The results reveal that 83 of companies favor a single business strategy, indicating a preference for specialization over diversification. Also unrelated diversification offers a higher performance results, followed by single business and related diversification, with dominant strategies generally yielding the lowest performance results.

 Diversification strategy is a critical decision for firms aiming to grow, reduce risk, and enhance competitive advantage. The purpose of this study is to explore the relationship between diversification strategies and firm performance in Turkey as an emerging country. The study examines empirical data through statistical analysis. The results reveal that 83 of companies favor a single business strategy, indicating a preference for specialization over diversification. Also unrelated diversification offers a higher performance results, followed by single business and related diversification, with dominant strategies generally yielding the lowest performance results.

 Diversification strategy is a critical decision for firms aiming to grow, reduce risk, and enhance competitive advantage. The purpose of this study is to explore the relationship between diversification strategies and firm performance in Turkey as an emerging country. The study examines empirical data through statistical analysis. The results reveal that 83 of companies favor a single business strategy, indicating a preference for specialization over diversification. Also unrelated diversification offers a higher performance results, followed by single business and related diversification, with dominant strategies generally yielding the lowest performance results.

 Çeşitlendirme stratejisi, büyümek, riskleri azaltmak ve rekabet avantajını artırmak isteyen firmalar için temel bir karardır. Araştırmanın amacı, Turkiyede, gelişmekte olan bir ülke olarak çeşitlendirme stratejileri ile firma performansı arasındaki ilişkiyi incelemektir. Araştırma istatistiksel analiz yoluyla ampirik verileri incelemektedir. Sonuçlar, şirketlerin 83ünün yoğunlaşmış stratejisini tercih ettiğini ve bu durumun, Çeşitlendirmeye kıyasla uzmanlaşmaya olan tercihi yansıttığını ortaya koymaktadır. Ayrıca, ilişkisiz Çeşitlendirmenin daha yüksek performans sonuçları sunduğu, sonra yoğunlaşmış stratejisi ve ilişkili Çeşitlendirmenin yer aldığını, ancak esas iş temelli stratejilerin genel olarak en düşük performans sonuçlarını verdiği görülmektedir.

Article Details

Diversification and Performance Relationship in Turkey: A study of companies listed on Istanbul Stock Exchange

Authors:

Chahrazad Aarab | İhsan Yiğit

Publisher:

Kocaeli University

Main Topics:

Politika ve Yönetim (Diğer)

Journal:

Kocaeli Üniversitesi Sosyal Bilimler Dergisi Vol.1 Issue 49, pp.52-65

Document Type:

Article

Publication Date:

7/2025

Document Language:

English

Document ID (Org No.):

2001354469

pISSN:

1302-6658

Diversification Strategy

Firm Performance

Emerging countryÇeşitlendirme Stratejisi

Firma Performansı

Gelişmekte Olan Ülke

Issues

Article Details

Diversification and Performance Relationship in Turkey: A study of companies listed on Istanbul Stock Exchange

Authors: Chahrazad Aarab | İhsan Yiğit

Publisher: Kocaeli University

Main Topics: Politika ve Yönetim (Diğer)

Journal: Kocaeli Üniversitesi Sosyal Bilimler Dergisi Vol.1 Issue 49, pp.52-65

Document Type: Article

Publication Date: 7/2025

Document Language: English

Document ID (Org No.): 2001354469

pISSN: 1302-6658

Diversification Strategy

Firm Performance

Emerging countryÇeşitlendirme Stratejisi

Firma Performansı

Gelişmekte Olan Ülke

Issues

Authors:

Chahrazad Aarab | İhsan Yiğit

Publisher:

Kocaeli University

Main Topics:

Politika ve Yönetim (Diğer)

Journal:

Kocaeli Üniversitesi Sosyal Bilimler Dergisi Vol.1 Issue 49, pp.52-65

Document Type:

Article

Publication Date:

7/2025

Document Language:

English

Document ID (Org No.):

2001354469

pISSN:

1302-6658