A DECADE OF RESEARCH ON THE IMPACT OF HERFINDHL’S STRATEGY INDEX AND CORPORATE PERFORMANCE: A LITERATURE REVIEW

Abstract

Companies that do diversification with business diversity are believed to improve the company's financial performance. Companies implement diversification strategies to increase the company's value by improving the overall performance of the company. When diversification strategy improves company performance, then strategic competitiveness. The company will grow so that an increase will follow in its value. The study analyzes the research results on the relationship between Herfindahl-based strategy and company performance by mapping empirical evidence from previous research over the past 10 years. The results show that there is an inconsistency of empirical evidence related to the relationship. Variasi's research results are based on the industrial sector and the variables that accompany the relationship between the two. The results of the research can provide a hint for future researchers to undertake model mining related to the relationship between diversification strategy and corporate performance achievement.