Ownership Types and Strategic Groups in an Emerging Economy

Journal of Management Studies, Vol. 41, No. 7, pp. 1105-1129, November 2004

25 Pages Posted: 13 Feb 2010

See all articles by Mike W. Peng

Mike W. Peng

University of Texas at Dallas - Naveen Jindal School of Management

Justin Tan

York University - Schulich School of Business

Tony W. Tong

University of Colorado at Boulder

Multiple version iconThere are 2 versions of this paper

Date Written: 2004

Abstract

Existing strategic group studies have rarely examined ownership type as a variable to classify firms in an industry. Using Chinese firms of different ownership types, we suggest that ownership type can be a parsimonious and important variable that managers use to cognitively classify firms into different strategic groups. While ownership itself is an objective variable, we contend that different ownership types lead to different managerial outlook and mentality due to a number of macro and micro foundations giving rise to various managerial cognitions. Employing the Miles and Snow typology, we find that state-owned enterprises (SOEs) and privately-owned enterprises (POEs) tend to adopt defender and prospector strategies, respectively, while collectively-owned enterprises (COEs) and foreign-invested enterprises (FIEs) exhibit an analyser orientation that falls between defenders and prospectors on the strategy continuum. Three statistical tests suggest that ownership types can be used to successfully predict strategic group memberships in China’s emerging economy.

Suggested Citation

Peng, Mike W. and Tan, Justin and Tong, Tony W., Ownership Types and Strategic Groups in an Emerging Economy (2004). Journal of Management Studies, Vol. 41, No. 7, pp. 1105-1129, November 2004. Available at SSRN: https://ssrn.com/abstract=1552272

Mike W. Peng

University of Texas at Dallas - Naveen Jindal School of Management ( email )

P.O. Box 830688
Richardson, TX 75083-0688
United States

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

Tony W. Tong

University of Colorado at Boulder ( email )

UCB 419
Boulder, CO 80309-0419
United States
303-492-8854 (Phone)
303-492-5962 (Fax)

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