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Emergent patterns of strategy, environment and performance in a transition economy

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  • Howard Davies
  • Peter Walters

Abstract

Insights from the resource dependence approach, dynamic fit, and strategic choice theories are used to explore the strategies adopted by Chinese enterprises, their settings, and the relationship between strategy, environment, and performance. Results from 959 firms indicate that respondents operating under ‘more marketized’ institutional settings tend to locate themselves in more munificent environments and place greater emphasis on meeting customer needs. Firms in China do not trade off one strategic direction against another, and certain strategy/environment coalignments have significant implications for performance. In particular, performance is better in more marketized and munificent environments and amongst firms who adopt an ‘aggressive’ strategic posture. Copyright © 2004 John Wiley & Sons, Ltd.

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  • Howard Davies & Peter Walters, 2004. "Emergent patterns of strategy, environment and performance in a transition economy," Strategic Management Journal, Wiley Blackwell, vol. 25(4), pages 347-364, April.
    • Handle: RePEc:bla:stratm:v:25:y:2004:i:4:p:347-364
    DOI: 10.1002/smj.380
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