Perceived environment, strategic orientation, ownership effect and performance implications in a transition economy: an empirical study in the People's Republic of China

A key element that enables a firm to achieve better performance is a fit between environment and firm strategy. A review of the literature on strategic management reveals that this relationship is moderated by other contextual variables, and that these contextual variables have not been systematically studied. The major focus of this study was to examine the impact of an important contextual variable, property ownership type, on the environment-strategy relationship and its performance implications. To guide this study theoretically, the literature on organizational environment, strategy, the environment-strategy relationship, and property ownership was reviewed, and theoretical implications discussed. It was hypothesized that (1) firms exhibiting same ownership type were likely to respond to perceived environment with similar strategy, and such responses varied across ownership types, (2) such strategic decisions would lead to better firm performance, and (3) in addition to the indirect impact of ownership on performance through the environment-strategy relationship, ownership type also had direct impact on performance. In order to test these hypotheses, constructs were operationalized in multidimensional manner. Perceived environment was operationalized in terms of three dimensions (resource scarcity, dynamism, and complexity), and strategy was operationalized in terms of five dimensions (futurity, proactiveness, analysis, defensiveness, and riskiness). Each of these dimensions were found to be theoretically significant in previous research. The research was set in the People’s Republic of China. Two hundred and two firms were surveyed, and these firms represented four ownership types (state enterprises, collective enterprises, joint venture enterprises, and private enterprises). Analysis of results suggest that ownership type is a theoretically important variable that has significant impact on variables that subject to managerial control. Firm ownership type moderated the magnitude (in two ownership types) and configuration (in another two ownership types) of environment-strategy relationship. This moderating effect of ownership led to significant performance implications. Moreover, firm ownership also had significant direct impact on firm performance. Findings from this study contribute insight into the environment-strategy relationship and hold promise for studying strategic management issues in former centrally planned economies undergoing transition toward market economies.

Name thesis:degree_name

Ph. D.

Level thesis:degree_level

doctoral

Discipline thesis:degree_discipline

Management

Department dc:contributor.department

Management

Grantor dc:publisher

Virginia Tech

Year dc:date.issued

1993

Author dc:creator

• Tan, J. Justin

Chair dc:contributor.committeechair

• Litschert, Robert J.

Committee members dc:contributor.committeemember

• Bonham, Thirwall W.
• Bonomo, Vittorio A.
• Lang, James R.
• Wokutch, Richard E.

Statement dc:rights

• In Copyright

Licence dc:rights.uri

• http://rightsstatements.org/vocab/InC/1.0/

Language dc:language.iso

en

Dc Identifier Other

etd-10262005-101027

OAI identifier oai:identifier

oai:vtechworks.lib.vt.edu:10919/40210