Strategic Fit in Transitional Economies: The Case of China’s Electronics Industry

Abstract

The strategic fit paradigm, originally derived from observations in market-based economies, asserts that an appropriate match between environment and strategy has significant and positive implications for business performance. Based on a random sample of Chinese electronics firms, this study systematically examines the applicability of the strategic fit paradigm in China’s centrally planned economy in transition. Results indicate that while environment-strategy coalignment is evident, coalignment only improves performance under certain environmental conditions.

Keywords: Chinese electronics industry, transitional economy, strategic fit, environment-strategy coalignment, performance, marketing