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Adapting to Radical Change: Strategy and Environment in Piece-Rate Adoption During China's Transition

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  • Lisa A. Keister

    (The Ohio State University, 313 Bricker Hall, 190 North Oval Mall, Columbus, Ohio 43210-1353)

Abstract

Adaptation to radical change is central to research in organization theory, and some of the most dramatic examples of environmental change have occurred recently in transition economies such as China. I take advantage of change during China's economic reform to study the relative importance of organizational and environmental factors in producing innovative managerial response. I find that strategic choice predicted innovation in the early stages of reform, but environmental factors increased in salience over time. Intrafirm support, Communist Party connections, and a market orientation produced innovation early in reform. Simple imitation of others was also salient in early years. As reform progressed, managers increasingly imitated other profitable firms and drew on their own experience. My results inform an understanding of both the process by which innovation occurs and firm behavior in transition economies.

Suggested Citation

  • Lisa A. Keister, 2002. "Adapting to Radical Change: Strategy and Environment in Piece-Rate Adoption During China's Transition," Organization Science, INFORMS, vol. 13(5), pages 459-474, October.
  • Handle: RePEc:inm:ororsc:v:13:y:2002:i:5:p:459-474
    DOI: 10.1287/orsc.13.5.459.7811
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    References listed on IDEAS

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    2. Dau, Luis Alfonso & Moore, Elizabeth M. & Kostova, Tatiana, 2020. "The impact of market based institutional reforms on firm strategy and performance: Review and extension," Journal of World Business, Elsevier, vol. 55(4).
    3. Man Chen & Zhi Yang & Wenyu Dou & Feng Wang, 2018. "Flying or dying? Organizational change, customer participation, and innovation ambidexterity in emerging economies," Asia Pacific Journal of Management, Springer, vol. 35(1), pages 97-119, March.
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    6. Perez-Batres, Luis A. & Eden, Lorraine, 2008. "Is there a liability of localness? How emerging market firms respond to regulatory punctuations," Journal of International Management, Elsevier, vol. 14(3), pages 232-251, September.
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    8. Diego Quer & Enrique Claver & Laura Rienda, 2007. "Business and management in China: A review of empirical research in leading international journals," Asia Pacific Journal of Management, Springer, vol. 24(3), pages 359-384, September.
    9. Kungl, Gregor & Geels, Frank W., 2016. "The destabilisation of the German electricity industry (1998-2015): Application and extension of a multi-dimensional framework," Research Contributions to Organizational Sociology and Innovation Studies, SOI Discussion Papers 2016-02, University of Stuttgart, Institute for Social Sciences, Department of Organizational Sociology and Innovation Studies.
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    11. Zhang, Yanlong, 2014. "From State to Market: Private Participation in China’s Urban Infrastructure Sectors, 1992–2008," World Development, Elsevier, vol. 64(C), pages 473-486.
    12. Igor Laine & Tamara Galkina, 0. "The interplay of effectuation and causation in decision making: Russian SMEs under institutional uncertainty," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-37.
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    15. Yang Cao & Beth A. Rubin, 2014. "Market Transition and the Deinstitutionalization of Standard Work Hours in Post-Socialist China," ILR Review, Cornell University, ILR School, vol. 67(3), pages 864-890, July.

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