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Environment‐strategy relationship and its performance implications: An empirical study of the chinese electronics industry
Author(s) -
Justin Tan J.,
Litsschert Robert J.
Publication year - 1994
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.4250150102
Subject(s) - china , business , marketing , perception , electronics , industrial organization , empirical research , psychology , political science , engineering , philosophy , electrical engineering , epistemology , neuroscience , law
This study examined the strategy‐environment‐performance paradigm in a centrally plannedeconomy (People's Republic of China) in transition to a more market‐driven economy. Based on a survey of top Chinese managers in the electronics industry, it was found that during this course of transformation, firms exhibited distinctive strategies despite a long tradition of central planning, and these strategies were signijcantly related to perceived environmental uncertainty. Specifically, managers perceptions of increased environmental uncertainty were found to be negatively related to proactive strategies and positively related to defensive strategies. Defensive strategies were also linked to higher performance.