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Overcoming corporate rigidities in the dynamic Chinese market

Author

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  • Li, Shenxue
  • Easterby-Smith, Mark
  • Lyles, Marjorie A.

Abstract

Companies often bring in what they believed and utilized in the past when they invest in the dynamic market of China, where changing environmental conditions often render existing beliefs and practices irrelevant. Over-generalizing from past situations could become a source of corporate rigidity, which results in a company's inability to anticipate the rapid changes that require evolution in its established systems, products, and market orientation. Companies must overcome corporate rigidities if they are to respond to the huge opportunities in China in a timely manner. In our research, we identified four distinct corporate rigidities--mindset rigidity, strategic rigidity, operational rigidity, and HRM rigidity--to help managers identify and assess the impact of rigidity on their China businesses. We provide four practical strategies for overcoming the four types of corporate rigidities.

Suggested Citation

  • Li, Shenxue & Easterby-Smith, Mark & Lyles, Marjorie A., 2008. "Overcoming corporate rigidities in the dynamic Chinese market," Business Horizons, Elsevier, vol. 51(6), pages 501-509.
    • Handle: RePEc:eee:bushor:v:51:y:2008:i:6:p:501-509
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    References listed on IDEAS

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    1. Andrew M. Pettigrew, 1990. "Longitudinal Field Research on Change: Theory and Practice," Organization Science, INFORMS, vol. 1(3), pages 267-292, August.
    2. Shenxue Li & Hugh Scullion, 2006. "Bridging the distance: Managing cross-border knowledge holders," Asia Pacific Journal of Management, Springer, vol. 23(1), pages 71-92, March.
    3. Helfat, Constance E, 1998. "Simple Indicators of Adaptation versus Rigidity in History-Dependent Firm Activities and Decision Rules," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 7(1), pages 49-75, March.
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    Cited by:

    1. Li, Shenxue & Scullion, Hugh, 2010. "Developing the local competence of expatriate managers for emerging markets: A knowledge-based approach," Journal of World Business, Elsevier, vol. 45(2), pages 190-196, April.
    2. Li, Shenxue & Easterby-Smith, Mark & Hong, Jacky F.L., 2019. "Towards an understanding of the nature of dynamic capabilities in high-velocity markets of China," Journal of Business Research, Elsevier, vol. 97(C), pages 212-226.
    3. Rehana Naheed & Muhammad Jawad & Munazza Naz & Bushra Sarwar & Rukhsana Naheed, 2021. "Managerial ability and investment decisions: Evidence from Chinese market," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(4), pages 985-997, June.

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