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Market and Nonmarket Strategies (NMS) in China: Performance Payoffs in Turbulent Environments

Author

Listed:
  • Long Zhang

    (China University of Geosciences (Beijing))

  • John A. Parnell

    (University of North Alabama)

  • Chuanhui Xiong

    (University of North Carolina At Pembroke)

Abstract

This paper investigates the financial and non-financial performance effects of strategic emphasis during times of market turbulence in China. A survey of 246 middle and upper-level managers in Beijing identified market turbulence as a direct driver of firm performance, a positive moderator of the link between market strategy and financial performance, and a negative moderator of the link between market strategy and non-financial performance. Market turbulence did not moderate links between either market strategy or nonmarket strategy and non-financial performance. These results suggest a performance payoff for leveraging NMS and a performance penalty for emphasizing market strategies during turbulent times.

Suggested Citation

  • Long Zhang & John A. Parnell & Chuanhui Xiong, 2021. "Market and Nonmarket Strategies (NMS) in China: Performance Payoffs in Turbulent Environments," Asian Business & Management, Palgrave Macmillan, vol. 20(5), pages 644-665, November.
    • Handle: RePEc:pal:abaman:v:20:y:2021:i:5:d:10.1057_s41291-020-00103-5
    DOI: 10.1057/s41291-020-00103-5
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