Environment-Strategy Relationship and its Performance Implications: An Empirical Study of Chinese Electronics Industry

Strategic Management Journal, Vol. 15, No. 1, pp. 1-20, January 1994

21 Pages Posted: 16 Feb 2010  

Justin Tan

York University - Schulich School of Business

Robert J. Litschert

Virginia Polytechnic Institute & State University - Pamplin College of Business

Date Written: 1994

Abstract

This study examined the strategy-environment-performance paradigm in a centrally planned economy (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 significantly 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.

Suggested Citation

Tan, Justin and Litschert, Robert J., Environment-Strategy Relationship and its Performance Implications: An Empirical Study of Chinese Electronics Industry (1994). Strategic Management Journal, Vol. 15, No. 1, pp. 1-20, January 1994. Available at SSRN: https://ssrn.com/abstract=1552172 or http://dx.doi.org/10.2139/ssrn.1552172

Justin Tan (Contact Author)

York University - Schulich School of Business ( email )

4700 Keele Street
Toronto, Ontario M3J 1P3
Canada

HOME PAGE: http://www.schulich.yorku.ca/SSB-Extra/Faculty.nsf/faculty/Tan%20Justin

Robert J. Litschert

Virginia Polytechnic Institute & State University - Pamplin College of Business ( email )

1016 Pamplin Hall
Blacksburg, VA 24061
United States

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