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Relationship between Logistics Firm Size and Business Diversification: An Empirical Study of Chongqing, Area in China

This 
paper aims to explore the relationship between logistics firm size and business 
diversification, especially in micro- and small-sized enterprises, and assess the 
diversification process of Chongqing logistics enterprises using new data 
source. It is intended to contribute to 
theoretical research on diversification in the emerging logistics industry 
based on resource-based view (RBV) and factor production theory. We 
innovatively establish the logistics business classification system, then 
measure the degree and direction of diversification of logistics enterprises based on mean narrow-spectrum 
diversification-based product count 
methods. The empirically shows that there are a growing number of 
highly-diversified logistics enterprises in general, with an average annual 
increase of 14.23%. Especially after 2008, small and medium-sized enterprises 
developed towards related diversification while micro-sized enterprises 
came to the opposite conclusion. For them, creating unrelated diversified 
business is a crucial way to generate a competitive advantage. Unlike the 
conclusions derived from other industries, small-sized logistics enterprises 
are prone to try a new business, both related and unrelated, for better 
survival and performance. And changes in the firm size of medium and 
large-sized enterprises have little impact on the development of the business 
diversification.