Diversification Strategies Research Articles

An Event Study on Impact of Russia-Ukraine War on Indian Banking Sector Stock

Aim: To study the impact of the Russia-Ukraine event on the performance of banking sector stocks. Study Designs: The descriptive statistical analysis has been done for six selected banks and is based on the Russia-Ukraine war. Study employs event analysis method for analysis. Place and Duration of Study: The secondary data has been downloaded from the NSE site, and the study duration is pre- and post-90 days from the event day and 120 days for the event window and 210 days for the estimation window has been considered. Methodology: The event analysis method has been used in which a paired t-test has been employed. We have checked significant at a p-value of 0.10 (10% level). Significant at p-value of 0.05 (5% level) Significant at p-value of 0.01 (1% level). Results: By examining a wide range of degrees of relationship between the two variables, we have tried to analyze how financial markets respond to changes in the warlike situation and how conditions impact asset prices. The results show the impact of the event before and after the event date. This analysis fills the gap in understanding event-specific impacts on financial institutions. Conclusion: The study provides insights into whether market behavior remained stable (null hypothesis accepted) or displayed volatility (alternate hypothesis accepted) across 90 days for global crises like the Russia-Ukraine war. The findings of the research have implications for the banking sector of India, policymakers, investors, and researchers. The research provides numerical and non-numerical information that other researchers can employ for cross-study analysis or for verifying theories. Lingering questions from the investors, including those in search of portfolio diversification strategies and the right time to invest. The discovery empowers the firms to have better policies inside and better relations outside, with customers and other stakeholders, such as during the change in monetary policy or in external shocks.

Integrating Business Ecosystems and Social Networks: A Case Study on Sustainable Transitions

This paper critically reviews the convergence between Business Ecosystem Theory and Social Network Theory in sustainability studies. While both frameworks view organizations as part of larger, interconnected systems, they can be differentiated by six key dimensions: unit of analysis, focus, decomposability, types of relationships, market segment, and worldview. To better reflect real-world phenomena, this paper argues for a new stream of theoretical convergence that is practical, reliable, generalizable, and reproducible. Specifically, it proposes shifting from interorganizational networks to interfunctional networks, offering a clearer theoretical framework, reducing strategic bias and complexity, enhancing stability over time, and providing a more objective foundation for diversification strategies. This is illustrated through a case study of Tesla Inc., built from secondary data, which serves as an example of the emergence of a new strategic construct named the Business Ecosystem Footprint. This construct could assist managers in understanding where their organization stands within the network of functions, guiding them in making informed decisions about resource allocation and diversification aimed at supporting financial goals as well as sustainability and decarbonization objectives. The article concludes by suggesting potential research agendas, such as automating ecosystem mapping, exploring constraints of the new construct, and testing hypotheses related to firm performance.

ANALISIS STRATEGI PT BUMYANG GLOVE DI YOGYAKARTA DALAM PENINGKATAN DAYA SAING

PT Bumyang Glove Prime was established in 2021, with its main product being golf gloves. The company produces and distributes more than 10 types of gloves, including golf gloves, hiking gloves, riding gloves, and winter gloves. This research aims to analyze the strategies adopted by PT Bumyang Glove in Yogyakarta to enhance the company's competitiveness in the glove industry. The research method used is a qualitative approach with SWOT analysis, considering internal and external factors affecting the company. Data were obtained through interviews, field observations, and analysis of relevant documents. The results show that PT Bumyang Glove has successfully strengthened its position in the market through product diversification strategies, improving production quality, and investing in research and development. The company is also active in expanding its distribution network and forming partnerships with suppliers and potential customers. However, challenges such as intense competition, fluctuations in raw material prices, and changes in product quality standard regulations are also identified.

Donor Relation and Income Diversification Strategies of a Diocese in the Philippines

Religious organizations, particularly in the Philippines, face financial challenges and require effective resource mobilization strategies to ensure sustainability. This study investigates donor relations and income diversification strategies within a Philippine diocese, examining funding policies, relationship management, donor influence, and income generation to address financial sustainability challenges faced by religious organizations. It analyzes these strategies through a descriptive-comparative design, utilizing data from 128 clergy and Parish Pastoral Council members. Findings reveal significant differences in perceptions between these groups regarding donor relations and income diversification, highlighting the need for collaborative approaches to financial management. This research contributes to understanding resource mobilization in religious organizations and offers practical insights for enhancing financial stability and autonomy.

Study on the Impact of Diversified Service Strategy: Case of Haidilao

In today's competitive market environment, it has become a trend for enterprises to seek diversified development. The diversification strategy aims to have a positive impact by expanding business areas and services to reduce corporate risks and improve market competitiveness. This paper takes Haidilao as an example to study the effect of the implementation of diversified service strategy from 2017 to 2023. Besides, the research shows that diversified service strategy has improved the financial performance of Haidilao enterprises. However, through comprehensive analysis by SWOT method, it can be seen that the implementation of diversification strategy is not smooth sailing, and many enterprises are faced with various challenges in the practice process, such as increased management difficulty, dispersed resources, and difficult to guarantee service quality. The study provides relevant theoretical reference and decision-making information for the catering industry. Through the implementation of diversified service strategy, Haidilao has achieved results in improving financial performance and market competitiveness, but it also faces problems such as cost increase, core business may be neglected, and service quality is difficult to control uniformly. Therefore, the optimization scheme of optimize staff allocation, strengthen staff training)and optimize resource allocation is proposed in this paper. This successful experience has important guiding significance and reference value for the whole catering industry in the aspects of business development, brand building, customer management and strategic planning.

What is at the heart of Macao tourism? Residents’ perspective in implicit and explicit associations with Macao destination images

ABSTRACT Macao's image has been purposefully crafted to reflect tourism diversification strategies, but if not grounded in reality, these efforts will only lead to image confusion. This study uses residents as destination experts and taps into their implicit associations using the Implicit Association Test (IAT) to assess the strength of their associations with various aspects of Macao's image projected to tourists. Based on the Associative Network Theory of Memory (ANT), casino hotels and events emerged as the most automatized, while shopping and art were the least rooted associations at an implicit level. By further comparing residents’ implicit associations with their explicit reflections, a deeply rooted resentment of casino image was discovered, raising concerns for residents’ willingness to support this prominent local industry and the reliability of the image projected to tourists. Practical implications for policymakers are discussed.

Livelihood diversification strategies and food security in the Weaving-based livelihood system of Gamo Zone, Southern Ethiopia

Background Livelihood diversification involves households earning through various economic activities, such as non-farm businesses, entrepreneurship, and off-farm jobs, improving sustainability, resilience, risk sharing, employment opportunities, and reducing poverty and food insecurity. However, little research has been done on the status, factors and relation of livelihood diversification and food security. This study explores the relationship between food security and livelihood diversification in the Chencha district of southern Ethiopia, focusing on determinants and their connection with household food security. Methods Quantitative and qualitative data were collected from 303 randomly selected households using surveys, key informant interviews, focus group discussions, and observations. Data were analyzed by using descriptive statistics, Herfindahl-Hirschman Index, Ordered probit regression and Pearson’s correlation coefficient. Results The result revealed that subsistence farming (52.1%) and weaving (38.6%) activities were reported as the primary and secondary main income sources of households. A majority of households (90.7%) diversified their livelihood. Based on income share, non-farm, on-farm, and off-farm income sources contributed, 72.96%, 25.3%, and 1.74% of total household income, respectively. Formal employment, weaving, barber/hairdresser, cattle production and sale, cereal production, and vegetable production (Potato) were highly paying livelihood activities in order. Households who combined on-farm, off-farm, and non-farm have gained far larger mean income followed by on-farm and non-farm strategies. Ordered Probit model results showed that landholding size, livestock holding size, and access to farmer training center (FTC) have positively affected the extent of livelihood diversification. Positive association was found between livelihood diversification and the food security status of households. Conclusion thus, the majority of weaving-based livelihood groups diversify their livelihood activities to on-farm, off-farm, and non-farm activities. Hence, supporting the weaving activity and motivating females’ participation, increasing other livelihood options, and modernizing the system with appropriate training, education, and market linkage seems inevitable.

Diversification Strategies and Financial Performance. A case of Banque Populaire du Rwanda Headquarters

This research investigated the impact of diversification on organizational performance at Banque Populaire du Rwanda (BPR). The study aimed to assess how channel and product diversifications affect BPR’s financial performance. Using a descriptive research design, the researcher focused on a population of 45 individuals, employing a census sampling technique to include all participants. Both qualitative and quantitative methods were utilized, with self-administered questionnaires as the primary data collection tool, supplemented by content analysis for validation. Data analysis included descriptive statistics, correlation, and regression, with findings presented in tables. Results showed that 77.8% of respondents strongly agreed that BPR products targeting the diaspora contribute to high profits, while 91.1% noted that financial security enhances competitive advantage. Additionally, 82.2% agreed that electronic banking improves customer satisfaction. The study also examined the return on equity (ROE) from 2019 to 2022, with ratios of 25.7%, 7.97%, 12.16%, and 18.56%, indicating shareholder interest in financial performance. The correlation analysis revealed a strong positive relationship (r = 0.894, p < 0.01) between diversification strategies and BPR’s performance, confirming the hypothesis. In conclusion, BPR should implement robust measures to enhance diversification strategies to improve performance, and financial institutions should prioritize effective management procedures to support these initiatives.

The dynamic connectedness between oil price shocks and emerging market economies stock markets: Evidence from new approaches

This paper uses the dynamic connectedness framework to investigate the interrelationship between the decomposed oil supply, demand and risk shocks that Ready (2018) developed and the stock market returns of emerging market economies. For this purpose, we use daily data from 11 October 2001 to 5 April 2021. Novel empirical methodologies, including wavelet quantile correlation (WQC), cross-quantilogram analysis, nonparametric causality-in-quantile approaches, contemporaneous R2 connectedness approach and generalized R2 connectedness approaches, are employed. The results show that oil price fluctuations significantly impact the economic performance of emerging market economies, reflecting historical events. Demand price shocks are regarded as net transmitters within the system, whereas supply and risk price shocks are net receivers of spillovers. Concurrently, our findings indicate a considerable degree of dynamic connectedness among the stock markets of emerging market economies. In particular, the stock markets of Brazil, Mexico, and Argentina have been identified as net transmitters of spillovers. In contrast, the stock markets of Turkey, South Korea, Malaysia, Indonesia and India are classified as net receivers of spillovers. Furthermore, we examine and document the advantages of diversified portfolios that include all sector indices, including oil price shocks and emerging market economy stock markets, in terms of portfolio performance. The insights offered here are valuable for investors and policymakers striving to enhance their strategic approaches in today's interconnected global financial context. The results show that oil price fluctuations significantly impact the economic performance of emerging market economies and reflect historical events. Demand shocks affecting the stock market indices of Brazil, Argentina and Mexico tend to act as net spillover transmitters. In contrast, supply shocks affecting the stock market indices of Indonesia, South Korea, India, Turkey and Malaysia mainly act as net spillover receivers. Net pairwise interconnectedness analysis reveals that, except for crisis periods, interactions between financial markets or macroeconomic indicators are evenly distributed. Thus, systemic risk is lower, and markets act independently. Empirical findings obtained using WQC generally show the presence of negative correlations at long-time scales and low quantiles, which is considered an indicator of the safe-haven feature associated with the asset in question. The hedge feature is observed to be evident only at long time scales. The results of the cross-quantilogram analysis show mixed evidence of correlation in all stock indices, especially in the weekly lag structure, compared to daily and monthly lags. Finally, non-parametric Granger causality test results show that stock returns are insensitive to oil price fluctuations, making these markets attractive for investors seeking diversification strategies. These findings provide valuable recommendations for investors seeking sustainable equities in a volatile oil market.

The Impact Of Revenue Diversification On Bank Profitability And Stability: Evidence From Indonesia Banking Industry

Purpose: This study aims to examine the effect of income diversification on the financial health of banks in Indonesia, focusing on income sources that significantly contribute to improving profitability and financial stability. Methodology/approach: This study uses a quantitative approach (positivism) which an associative nature. The research population consists of banking companies listed on the IDX from 2020-2023, with a sample of 168 observations selected using the purposive sampling method. The data analysis technique employs panel data regression using Eviews 12 software. Findings: The results of the regression analysis show that, total revenue diversification has a positive effect on profitability, but a negative effect on financial stability. Meanwhile, the proportion of non-interest income has a negative effect on profitability, but a positive effect on financial stability, with commission income as the most stable component of non-interest income and increasing profitability. Practical implications: This research contributes to helping bank management to be prudent in implementing income diversification strategies, by prioritizing interest income and avoiding high risk in non-interest income. The findings can also be taken into consideration for regulators in encouraging a balanced diversification strategy to maintain financial stability. Originality/value: The update in this study uses additional measurements to reveal the value of diversification that has not been discussed by previous researchers. This measurement is to differentiate diversification conditions that have similar values so that they are not considered the same. In addition, researchers also added control variables to increase the validity of the research

Strategic approaches to enhancing credit risk management in microfinance institutions

Microfinance institutions (MFIs) play a critical role in providing financial services to underserved, low-income populations, yet face significant challenges in managing credit risk due to the nature of their clientele and loan structures. Enhancing credit risk management in MFIs is essential for ensuring financial stability, reducing default rates, and fostering sustainable growth. This review examines strategic approaches to credit risk management tailored to the microfinance context, where traditional credit assessment methods may be less effective. It explores innovative client profiling techniques, such as segmented risk analysis and customized credit scoring models, which leverage demographic and behavioral data to more accurately assess borrower reliability. The use of data-driven decision-making, particularly through predictive analytics and machine learning, is highlighted as a means to anticipate client repayment behaviors and improve risk forecasting. Further, real-time loan monitoring systems with early warning indicators offer MFIs proactive risk mitigation strategies, enabling prompt interventions to prevent defaults. Institutional improvements, including standardized risk frameworks, enhanced training for loan officers, and regular compliance checks, strengthen organizational resilience against credit risks. Portfolio diversification strategies, such as sectoral and geographic diversification, and the integration of group lending models, are also discussed as effective means of reducing risk concentration. By implementing these multifaceted, strategic approaches, MFIs can improve their credit risk management frameworks, better serve their clients, and achieve greater financial sustainability. The review emphasizes the importance of adapting to rapidly evolving risk factors and adopting innovative tools and practices to meet the unique challenges of microfinance. The findings advocate for continuous research and investment in advanced credit risk methodologies, ultimately contributing to the broader goal of financial inclusion.

Bioinspired Total Synthesis of Natural Products.

ConspectusCurrently, the frontier challenges in total synthesis pertain to increasing the synthetic efficiency and enabling the divergent synthesis of a number of natural products. Bioinspired synthesis has been well recognized as an effective approach to increasing synthetic efficiency. Especially, when bioinspired synthesis was applied at late-stage skeletal diversification to generate various natural products with distinct carbon skeletons, it held special promise for achieving both goals. In our laboratory, bioinspired synthesis has served as one of two long-standing principles for facilitating the efficient synthesis of natural products. In this Account, we summarize our endeavors and journeys in the bioinspired synthesis of natural products. We categorize our work into three parts based on the imitation of biosynthetic reactions and processes.(1) To mimic the key cyclization steps. Inspired by the biosynthetic process that formed the core skeleton, we developed new synthetic methods to enable the rapid and efficient construction of the core skeletons of the targeted molecules, ultimately leading to their concise total synthesis, for example, seven-step total synthesis of lamellarins D and H featuring three bioinspired oxidative coupling reactions, seven-step total synthesis of clavicipitic acid highlighted by a C-H activation/aminocyclization cascade reaction, eight-step total synthesis of phalarine via a bioinspired oxidative coupling, seven-step total synthesis of α-cyclopiazonic acid, and ten-step total synthesis of speradine C through a bioinspired cascade cyclization reaction initiated by the benzylic carbocation of indole. (2) To mimic the revised biosynthetic pathway proposed by us. In some cases, the proposed biosynthetic processes may be flawed, as they contradict some basic principles of chemistry. Thus, an alternative biosynthetic process must be proposed and investigated. We showcase the total synthesis of euphorikanin A through a bioinspired benzilic acid-type rearrangement and bipolarolides A and B via a bioinspired Prins reaction/ether formation cascade cyclization. (3) To mimic the skeletal diversification process. Nature usually synthesizes a multitude of products from a key common intermediate in a divergent manner. Biogenic skeletal diversification to generate various natural products with distinct carbon skeletons has also drawn our attention. Compared with single-target-oriented synthesis, skeletal-diversity-oriented synthesis of natural products remains underexplored due to its high synthetic challenges. We showcased the divergent total syntheses of ten pallavicinia diterpenoids with three distinct skeletons and six grayanane diterpenoids with three distinct skeletons, which were achieved with unprecedented ease and high efficiency by imitation of the proposed biogenic skeletal diversification process. These two successful projects can serve as inspiration for the application of the bioinspired skeletal diversification strategy to other skeletally diverse natural products.

Is the Revenue Diversification Strategy in Sharia Banks Effective during Covid-19 Pandemic?

Purpose: This research aims to examine the role of revenue diversification in ensuring financial performance remains stable and various risks in Islamic banks can be mitigated. Methodology/approach: This type of research is quantitative and uses purposive sampling on the Islamic banking statistical report published by the Financial Services Authority (OJK) on March 2021 to June 2023. The data will be tested using multiple linear regression analysis using SPSS version 21. Findings: The results of the study indicate that the diversification strategy implemented by Sharia Banks in Indonesia can improve financial performance as proxied by ROA and ROE, and can reduce financing risk as proxied by NPF. Practical implications: The results of this study are expected to provide recommendations for Islamic banking in determining various non-operational activity policies to maximize income in various conditions, including during the COVID-19 pandemic. Originality/value: This study tries to see the effect of income diversification strategy by increasing non-operational income that can be done as an effort to maintain the financial stability of Islamic banks in any condition. In addition, the researcher added control variables in the form of total assets, capital, FDR, and the Sharia Supervisory Board (DPS) to strengthen the research results.

Effect of Vertical Diversification on Sustainable Livelihoods among Fish Farmers in Kakamega County, Kenya

This study examined the effect of vertical diversification on sustainable livelihoods among fish farmers. The study employs descriptive and survey research designs to collect data from 350 randomly selected fish farmers across the 12 sub-counties in Kakamega County, Kenya. Findings indicate that vertical diversification, through value addition, processing, and packaging, significantly impacts sustainable livelihoods. The results demonstrate that vertical diversification contributes to income gains, physical asset accumulation and social capital growth. The study concludes that fostering vertical diversification strategies, improving access to financial services and promoting cooperative farming models can significantly enhance the livelihoods of fish farmers. These findings underscore the need for policy interventions to support rural economic diversification. The study further recommends improvement of farmers’ access to financial services as well as promotion of cooperative farming for better outcomes.

Livelihood Diversification Strategies and Their Prioritization among Farmers in North Central Nigeria

Livelihood Diversification Strategies and Their Prioritization among Farmers in North Central Nigeria

Diversification Strategy of Processed Tuna Fish Products for Coastal Community Empowerment in Bone Bolango Regency

Diversification of tuna fish products is a concern for coastal communities in Bone Bolango Regency because this will also get attention and support from the Bone Bolango Regency government considering the potential of tuna fish production in Bone Bolango Regency. This tuna fish product diversification strategy is one of the strategies carried out so that the tuna produced is not only sold through catches, but can be developed through diversification of various tuna fish product processing. This study aims to explore the understanding of coastal communities in Bone Bolango Regency in diversifying processed tuna products, and also to find out the factors that contribute greatly to empowering coastal communities in diversifying processed tuna products. For this reason, the first objective of this study will be analyzed qualitatively by interviewing respondents, the second will use the Analytical Hierarchy Process (AHP) method. The results of the analysis explain that in general, the understanding of the coastal community of Bone Bolango Regency about the diversification of processed tuna products is still not optimal. Some people are starting to realize the potential of processing tuna-based products, but limitations in technology and skills prevent them from truly taking advantage of this opportunity. The AHP results suggest that in efforts to empower coastal communities to diversify processed tuna, the dominant factor is coaching and education with the largest weight of 0.466, then the conservation and sustainability factor is the second factor with a value of 0.247, then the infrastructure and market access factor with a weight of 0.166 and finally the availability of resources with a weight of 0.121. Comprehensive policy implications must consider these four factors holistically, with the main priority on coaching and education, followed by environmental conservation, infrastructure development, and ensuring the availability of resources. Through targeted policies, it is hoped that coastal communities can improve their skills and competitiveness, and be able to create processed tuna products with high added value and sustainable.

Investing in relative market positions in interconnected financial markets: A strategy for international portfolio diversification

International investors face challenges in properly diversifying their portfolios risk due to the increasingly interconnected nature of financial markets. Using the Tail-Event Driven Network (TENET) model, this study proposes two new indices, relative dominance and relative importance, to measure the relative market position of a stock market in the global stock market network. This study further proposes a dominance-importance-oriented (DIO) strategy to diversify portfolio risk in interconnected stock markets using data from the stock markets of 35 economies. The empirical findings show that stock markets in developed countries generally have higher relative dominance and lower relative importance, whereas those in developing and emerging countries have the opposite pattern. Moreover, financial liberalization is an important determinant of stock markets' relative positions in the global market network, although its impact varies with the economic development of their domicile countries. Furthermore, the DIO strategy offers a feasible and effective method for international portfolio diversification by jointly considering relative dominance and importance, verifying that portfolio diversification in terms of relative market position is beneficial.

Should South Asian Stock Market Investors Think Globally? Investigating Safe Haven Properties and Hedging Effectiveness

In this study, we examine the critical question of whether global equity and bond assets (both green and non-green) offer effective hedging and safe haven properties against stock market risks in South Asia, with a focus on Bangladesh, India, Pakistan, and Sri Lanka. The increasing integration of global financial markets and the volatility experienced during recent economic crises raise important questions regarding the resilience of South Asian markets and the potential protective role of global assets. Drawing on methods like VaR and CVaR tail risk estimators, the DCC-GJR-GARCH time-varying connectedness approach, and cost-effectiveness tools for hedging, we analyze data spanning from 2014 to 2022 to assess these relationships comprehensively. Our findings demonstrate that stock markets in Bangladesh experience lower levels of downside risk in each quantile; however, safe haven properties from the global financial markets are effective for Bangladeshi, Indian, and Pakistani stock markets during the crisis period. Meanwhile, the Sri Lankan stock market neither receives hedging usefulness nor safe haven benefits from the same marketplaces. Additionally, global green assets, specifically green bond assets, are more reliable sources to ensure the safest investment for South Asian investors. Finally, the portfolio implications suggest that while traditional global equity assets offer ideal portfolio weights for South Asian investors, global equity and bond assets (both green and non-green) are the cheapest hedgers for equity investors, particularly in the Bangladeshi, Pakistani, and Sri Lankan stock markets. Moreover, these results hold significant implications for investors seeking to optimize portfolios and manage risk, as well as for policymakers aiming to strengthen regional market resilience. By clarifying the protective capacities of global assets, particularly green ones, our study contributes to a nuanced understanding of portfolio diversification and financial stability strategies within emerging markets in South Asia.

Skill capabilities behind the scenes: the role of occupational portfolio in regional industrial evolution

ABSTRACT An increasing number of studies confirm that regional diversification is path dependent, with new industries building on pre-existing ones. However, these studies typically overlook the role of skill capabilities and the interactions between skills and industries. In this research, based on the concept of industry–occupation cross-relatedness, the influence of skill capabilities on industrial diversification across Chinese regions was investigated. The findings indicate that regions can diversify into skill-related activities following a skill path-dependent process. Furthermore, a theoretical framework integrating industry–occupation cross-relatedness and economic complexity was introduced that enabled the adoption of various diversification strategies based on regional skill capabilities.

AI companies' strategies with traditional vs. digital assets amid geopolitical and banking crises

The financial industry evolves rapidly, offering numerous opportunities but also introducing inherent risks that require careful navigation by institutions. This paper explores the performance of traditional and digital assets as tools for hedging, diversification, and safe-haven strategies during the Russian-Ukrainian crisis and the Silicon Valley Bank (SVB) collapse. Utilizing daily data from April 30, 2021, to September 15, 2023, and employing the Asymmetric Dynamic Conditional Correlation (ADCC) model, which combines four Generalized Autoregressive Conditional Heteroskedasticity (GARCH) family models and two residual distributions, we conduct a comprehensive analysis. The results indicate that Bitcoin's role as a safe haven is limited during the geopolitical crisis, impacting specific stocks, while gold's effectiveness varies. Digix Gold (DGX) demonstrates robust safe-haven properties, and Paxos Gold (PAXG) proves notably effective for certain stocks. Before the SVB crisis, gold primarily acts as a diversifier but later emerges as a significant safe haven during the banking crisis. These findings provide valuable insights to portfolio managers, emphasizing the importance of adaptive asset allocation in addressing financial uncertainties.