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Performance implications of nonmarket strategy in China

  • Yuanqiong He

    ()

  • Zhilong Tian

    ()

  • Yun Chen

    ()

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    Nonmarket strategy may have positive influences on a firm’s performance. How does nonmarket strategy influence a firm’s performance? This article addresses this important question by introducing two mediators: corporate social performance and adaptive capability. The empirical results based on a survey of 438 usable questionnaires from China indicate that “buffering” and “bridging,” being two kinds of nonmarket strategies, have a positive impact on a firm’s economic performance through enhancing its social performance and adaptive capability. The article not only documents the positive effect of nonmarket strategy on firm performance in emerging economies such as China, but also explains the indirect relationship between nonmarket strategy and economic performance, which generates both theoretical and practical implications. Copyright Springer Science+Business Media, LLC 2007

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    File URL: http://hdl.handle.net/10.1007/s10490-006-9030-3
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    Article provided by Springer in its journal Asia Pacific Journal of Management.

    Volume (Year): 24 (2007)
    Issue (Month): 2 (June)
    Pages: 151-169

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    Handle: RePEc:kap:asiapa:v:24:y:2007:i:2:p:151-169
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    Web page: http://www.springerlink.com/link.asp?id=106589

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    1. Julie Li, 2005. "The Formation of Managerial Networks of Foreign Firms in China: The Effects of Strategic Orientations," Asia Pacific Journal of Management, Springer, vol. 22(4), pages 423-443, December.
    2. Tan, Justin, 2001. "Innovation and risk-taking in a transitional economy: A comparative study of chinese managers and entrepreneurs," Journal of Business Venturing, Elsevier, vol. 16(4), pages 359-376, July.
    3. Mike W. Peng & Justin Tan & Tony W. Tong, 2004. "Ownership Types and Strategic Groups in an Emerging Economy," Journal of Management Studies, Wiley Blackwell, vol. 41(7), pages 1105-1129, November.
    4. Alfred Wong & Dean Tjosvold & Pengzhu Zhang, 2005. "Supply Chain Relationships for Customer Satisfaction in China: Interdependence and Cooperative Goals," Asia Pacific Journal of Management, Springer, vol. 22(2), pages 179-199, June.
    5. Thang Nguyen & Marc Weinstein & Alan Meyer, 2005. "Development of Trust: A Study of Interfirm Relationships in Vietnam," Asia Pacific Journal of Management, Springer, vol. 22(3), pages 211-235, September.
    6. Mike Peng & Jessie Zhou, 2005. "How Network Strategies and Institutional Transitions Evolve in Asia," Asia Pacific Journal of Management, Springer, vol. 22(4), pages 321-336, December.
    7. JS Armstrong & Terry Overton, 2005. "Estimating Nonresponse Bias in Mail Surveys," General Economics and Teaching 0502044, EconWPA.
    8. Peng, Mike W. & Lee, Seung-Hyun & Tan, J. Justin, 2001. "The keiretsu in Asia: Implications for multilevel theories of competitive advantage," Journal of International Management, Elsevier, vol. 7(4), pages 253-276.
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