Strategic Responses to Competitive Pressure: The Case of Township and Village Enterprises in China

18 Pages Posted: 20 Feb 2010 Last revised: 20 Dec 2013

See all articles by Yadong Luo

Yadong Luo

University of Miami - Department of Management

Justin Tan

York University - Schulich School of Business

Oded Shenkar

Ohio State University (OSU) - Human Resource Research

Date Written: 1998

Abstract

This study assesses the configuration between strategic orientation and industrial environment for Chinese township and village enterprises (TVEs), the organizational form which has played an increasingly important role in Chinese economic development and structural reform. We argue that the complexity, dynamism, and hostility of the industrial environment influence TVE managers’ perception of competitive pressure, which in turn affects the firm’s strategic orientations such as innovativeness, proactiveness, risk-taking, and analysis. Our analysis, based on a survey of TVE managers in Tianjin and Jiangsu, demonstrates that complexity and dynamism of industrial competition have a systematically positive impact on TVEs’ innovativeness, proactiveness, risk-taking, or analysis. Environmental hostility is not significantly associated with any strategic orientations adopted by Chinese TVEs. Implications of the findings are discussed.

Suggested Citation

Luo, Yadong and Tan, Justin and Shenkar, Oded, Strategic Responses to Competitive Pressure: The Case of Township and Village Enterprises in China (1998). Asia Pacific Journal of Management, Vol. 15, 1998. Available at SSRN: https://ssrn.com/abstract=1554663 or http://dx.doi.org/10.2139/ssrn.1554663

Yadong Luo (Contact Author)

University of Miami - Department of Management ( email )

United States

Justin Tan

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

Oded Shenkar

Ohio State University (OSU) - Human Resource Research ( email )

700 Fisher Hall
2100 Neil Avenue
Columbus, OH 43210-1144
United States

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