Advanced Search
MyIDEAS: Login to save this article or follow this journal

Flexibility-efficiency tradeoff and performance implications among Chinese SOEs

Contents:

Author Info

  • Tan, Justin
  • Wang, Liang
Registered author(s):

    Abstract

    This paper examines performance implications of the flexibility-efficiency tradeoff in the turbulent environment. We test the relationship between resource utilization and firm performance among the Chinese state-owned enterprises (SOEs) during China's economic transformation. The study finds that (1) overall efficiency enhances performance; (2) different measures of efficiency all exhibit curvilinear relationship with performance; and (3) differences exist between high efficiency and low efficiency subgroups of firms. The results reveal that efficiency as well as flexibility has a positive impact on firm performance only within a certain range. Beyond a certain point, the cost of maintaining flexibility overwhelms the benefit, causing performance to decline.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.sciencedirect.com/science/article/B6V7S-4W8KHNG-3/2/c1b0f73947df95e817049428d9074c89
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Business Research.

    Volume (Year): 63 (2010)
    Issue (Month): 4 (April)
    Pages: 356-362

    as in new window
    Handle: RePEc:eee:jbrese:v:63:y:2010:i:4:p:356-362

    Contact details of provider:
    Web page: http://www.elsevier.com/locate/jbusres

    Related research

    Keywords: China Flexibility-efficiency tradeoff Resource-based view Dynamic capabilities State-owned enterprises;

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Daniel, Francis & Lohrke, Franz T. & Fornaciari, Charles J. & Turner, R. Jr., 2004. "Slack resources and firm performance: a meta-analysis," Journal of Business Research, Elsevier, Elsevier, vol. 57(6), pages 565-574, June.
    2. Finney, R. Zachary & Lueg, Jason E. & Campbell, Noel D., 2008. "Market pioneers, late movers, and the resource-based view (RBV): A conceptual model," Journal of Business Research, Elsevier, Elsevier, vol. 61(9), pages 925-932, September.
    3. Jay B. Barney, 1986. "Strategic Factor Markets: Expectations, Luck, and Business Strategy," Management Science, INFORMS, INFORMS, vol. 32(10), pages 1231-1241, October.
    4. Ingemar Dierickx & Karel Cool, 1989. "Asset Stock Accumulation and the Sustainability of Competitive Advantage: Reply," Management Science, INFORMS, INFORMS, vol. 35(12), pages 1514-1514, December.
    5. Finney, R. Zachary & Campbell, Noel D. & Powell, C. Michael, 2005. "Strategies and resources: Pathways to success?," Journal of Business Research, Elsevier, Elsevier, vol. 58(12), pages 1721-1729, December.
    6. Kornai, Janos, 1992. "The Socialist System: The Political Economy of Communism," OUP Catalogue, Oxford University Press, Oxford University Press, number 9780198287766, October.
    7. Olavarrieta, Sergio & Friedmann, Roberto, 2008. "Market orientation, knowledge-related resources and firm performance," Journal of Business Research, Elsevier, Elsevier, vol. 61(6), pages 623-630, June.
    8. Margaret A. Peteraf & Jay B. Barney, 2003. "Unraveling the resource-based tangle," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 24(4), pages 309-323.
    9. Wu, Lei-Yu, 2007. "Entrepreneurial resources, dynamic capabilities and start-up performance of Taiwan's high-tech firms," Journal of Business Research, Elsevier, Elsevier, vol. 60(5), pages 549-555, May.
    10. Dreyer, Bent & Gronhaug, Kjell, 2004. "Uncertainty, flexibility, and sustained competitive advantage," Journal of Business Research, Elsevier, Elsevier, vol. 57(5), pages 484-494, May.
    11. Cepeda, Gabriel & Vera, Dusya, 2007. "Dynamic capabilities and operational capabilities: A knowledge management perspective," Journal of Business Research, Elsevier, Elsevier, vol. 60(5), pages 426-437, May.
    12. Ghemawat, Pankaj & Ricart, Joan E., 1993. "Organizational tension between static and dynamic efficiency, The," IESE Research Papers D/255, IESE Business School.
    13. Tan, Justin & Li, Shaomin & Xia, Jun, 2007. "When iron fist, visible hand, and invisible hand meet: Firm-level effects of varying institutional environments in China," Journal of Business Research, Elsevier, Elsevier, vol. 60(7), pages 786-794, July.
    14. Mahoney, Joseph T., 1995. "The management of resources and the resource of management," Journal of Business Research, Elsevier, Elsevier, vol. 33(2), pages 91-101, June.
    15. Judge, William Q. & Elenkov, Detelin, 2005. "Organizational capacity for change and environmental performance: an empirical assessment of Bulgarian firms," Journal of Business Research, Elsevier, Elsevier, vol. 58(7), pages 893-901, July.
    16. Carlsson, Bo, 1989. "Flexibility and the theory of the firm," International Journal of Industrial Organization, Elsevier, Elsevier, vol. 7(2), pages 179-203, June.
    17. Ingemar Dierickx & Karel Cool, 1989. "Asset Stock Accumulation and Sustainability of Competitive Advantage," Management Science, INFORMS, INFORMS, vol. 35(12), pages 1504-1511, December.
    18. Dwight H. Perkins, 1994. "Completing China's Move to the Market," Journal of Economic Perspectives, American Economic Association, vol. 8(2), pages 23-46, Spring.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Heng Liu & Xiu-hao Ding & Hai Guo & Jin-hui Luo, 2014. "How does slack affect product innovation in high-tech Chinese firms: The contingent value of entrepreneurial orientation," Asia Pacific Journal of Management, Springer, Springer, vol. 31(1), pages 47-68, March.
    2. Main Naser Alolayyan & Khairul Anuar Mohd Ali & Fazli Idris, 2011. "The Impact Of Operational Flexibility On Hospital Performance In Jordanian Hospitals - Some Empirical Evidences," Journal of Global Management, Global Research Agency, Global Research Agency, vol. 2(1), pages 39-54, July.
    3. Assaf, A. George & Josiassen, Alexander & Gillen, David, 2014. "Measuring firm performance: Bayesian estimates with good and bad outputs," Journal of Business Research, Elsevier, Elsevier, vol. 67(6), pages 1249-1256.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:63:y:2010:i:4:p:356-362. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.