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Performance implications of nonmarket strategy in China

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  • Yuanqiong He
  • Zhilong Tian
  • Yun Chen

Abstract

Nonmarket strategy may have positive influences on a firm’s performance. How does nonmarket strategy influence a firm’s performance? This article addresses this important question by introducing two mediators: corporate social performance and adaptive capability. The empirical results based on a survey of 438 usable questionnaires from China indicate that “buffering” and “bridging,” being two kinds of nonmarket strategies, have a positive impact on a firm’s economic performance through enhancing its social performance and adaptive capability. The article not only documents the positive effect of nonmarket strategy on firm performance in emerging economies such as China, but also explains the indirect relationship between nonmarket strategy and economic performance, which generates both theoretical and practical implications. Copyright Springer Science+Business Media, LLC 2007

Suggested Citation

  • Yuanqiong He & Zhilong Tian & Yun Chen, 2007. "Performance implications of nonmarket strategy in China," Asia Pacific Journal of Management, Springer, vol. 24(2), pages 151-169, June.
    • Handle: RePEc:kap:asiapa:v:24:y:2007:i:2:p:151-169
    DOI: 10.1007/s10490-006-9030-3
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    2. Simon Lam & Joseph Yeung, 2010. "Staff localization and environmental uncertainty on firm performance in China," Asia Pacific Journal of Management, Springer, vol. 27(4), pages 677-695, December.
    3. Yuanqiong He & Hongyi Sun & Kin Lai & Yun Chen, 2015. "Organizational empowerment and service strategy in manufacturing," Service Business, Springer;Pan-Pacific Business Association, vol. 9(3), pages 445-462, September.
    4. Robertson, Christopher J. & Diyab, Abdulhamid A. & Al-Kahtani, Ali, 2013. "A cross-national analysis of perceptions of corporate governance principles," International Business Review, Elsevier, vol. 22(1), pages 315-325.
    5. Cheng, Louis T.W. & Chan, Ricky Y.K. & Leung, T.Y., 2010. "Management demography and corporate performance: Evidence from China," International Business Review, Elsevier, vol. 19(3), pages 261-275, June.
    6. Kim, Huong Trang & Papanastassiou, Marina & Nguyen, Quang, 2017. "Multinationals and the impact of corruption on financial derivatives use and firm value: Evidence from East Asia," Journal of Multinational Financial Management, Elsevier, vol. 39(C), pages 39-59.
    7. Liu, Xiaohui & Gao, Lan & Lu, Jiangyong & Lioliou, Eleni, 2016. "Does learning at home and from abroad boost the foreign subsidiary performance of emerging economy multinational enterprises?," International Business Review, Elsevier, vol. 25(1), pages 141-151.
    8. K. O’Shaughnessy & Eric Gedajlovic & Patrick Reinmoeller, 2007. "The influence of firm, industry and network on the corporate social performance of Japanese firms," Asia Pacific Journal of Management, Springer, vol. 24(3), pages 283-303, September.
    9. Vikrant Shirodkar & Alexander T. Mohr, 2015. "Resource Tangibility and Foreign Firms’ Corporate Political Strategies in Emerging Economies: Evidence from India," Management International Review, Springer, vol. 55(6), pages 801-825, December.
    10. Bell, R. Greg & Moore, Curt B. & Filatotchev, Igor, 2012. "Strategic and institutional effects on foreign IPO performance: Examining the impact of country of origin, corporate governance, and host country effects," Journal of Business Venturing, Elsevier, vol. 27(2), pages 197-216.
    11. Mas-Tur, Alicia & Pinazo, Pablo & Tur-Porcar, Ana María & Sánchez-Masferrer, Manuel, 2015. "What to avoid to succeed as an entrepreneur," Journal of Business Research, Elsevier, vol. 68(11), pages 2279-2284.
    12. Chieh-Peng Lin & Nyan-Myau Lyau & Yuan-Hui Tsai & Wen-Yung Chen & Chou-Kang Chiu, 2010. "Modeling Corporate Citizenship and Its Relationship with Organizational Citizenship Behaviors," Journal of Business Ethics, Springer, vol. 95(3), pages 357-372, September.
    13. Liu, Xiaohui & Gao, Lan & Lu, Jiangyong & Lioliou, Eleni, 2016. "Environmental risks, localization and the overseas subsidiary performance of MNEs from an emerging economy," Journal of World Business, Elsevier, vol. 51(3), pages 356-368.
    14. Chan, Ricky Y.K., 2010. "Corporate environmentalism pursuit by foreign firms competing in China," Journal of World Business, Elsevier, vol. 45(1), pages 80-92, January.

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