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An empirical study of SOEs' market orientation in transitional China

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  • Yuan Li
  • YongFeng Sun
  • Yi Liu

Abstract

Using institutional theory, this paper investigates the antecedents and outcomes of market orientation in state-owned enterprises (SOEs) in transitional China. A survey of 274 SOEs demonstrates a strong positive relationship between market orientation and various measures of organizational performance. Additionally, market competitive pressure, formalized corporate governance, and less government control are found to promote market orientation of SOEs in the transitional period. These results support the views that market orientation leads to better performance and that institutional factors should be considered in studies of strategy in Chinese firms. Copyright Springer Science + Business Media, Inc. 2006

Suggested Citation

  • Yuan Li & YongFeng Sun & Yi Liu, 2006. "An empirical study of SOEs' market orientation in transitional China," Asia Pacific Journal of Management, Springer, vol. 23(1), pages 93-113, March.
    • Handle: RePEc:kap:asiapa:v:23:y:2006:i:1:p:93-113
    DOI: 10.1007/s10490-006-6117-9
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    2. Jingxiao Zhang & Hui Li & Steve Hsueh-Ming Wang, 2017. "Analysis and Potential Application of the Maturity of Growth Management in the Developing Construction Industry of a Province of China: A Case Study," Sustainability, MDPI, vol. 9(1), pages 1-36, January.
    3. Teng Lin & Marion Hutchinson & Majella Percy, 2015. "Earnings management and the role of the audit committee: an investigation of the influence of cross-listing and government officials on the audit committee," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 19(1), pages 197-227, February.
    4. Huang, Yuanyuan & Xie, En & Li, Yu & Reddy, K.S., 2017. "Does state ownership facilitate outward FDI of Chinese SOEs? Institutional development, market competition, and the logic of interdependence between governments and SOEs," International Business Review, Elsevier, vol. 26(1), pages 176-188.
    5. Wong, Yui-Tim & Ngo, Hang-Yue & Wong, Chi-Sum, 2006. "Perceived organizational justice, trust, and OCB: A study of Chinese workers in joint ventures and state-owned enterprises," Journal of World Business, Elsevier, vol. 41(4), pages 344-355, December.
    6. Liu, Yi & Li, Yuan & Xue, Jiaqi, 2011. "Ownership, strategic orientation and internationalization in emerging markets," Journal of World Business, Elsevier, vol. 46(3), pages 381-393, July.
    7. Liu, Yi & Li, Yuan & Wei, Zelong, 2009. "How organizational flexibility affects new product development in an uncertain environment: Evidence from China," International Journal of Production Economics, Elsevier, vol. 120(1), pages 18-29, July.

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