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Strategic alignment and performance of market‐seeking MNCs in China

Strategic alignment and performance of market‐seeking MNCs in China This study explores the environment–strategy–performance relation of foreign firms, especially those with a market‐seeking mandate, in China. The results indicate that the Analyzer orientation is best suited to the turbulent Chinese market, which has been undergoing an economic transition in recent years. There is also a significant difference in financial performance among market‐seeking MNCs depending on strategic orientations, with the Analyzer orientation producing the highest performance. The Prospector and the Defender orientations lead to poor financial performance because of the mismatch with China's market, which is highly dynamic and complex. Our findings reiterate the importance of understanding local market traits and opportunities and developing proper strategic configurations for market‐seeking MNC subsidiaries, especially in an emerging economy like China. Copyright © 2001 John Wiley & Sons, Ltd. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Strategic Management Journal Wiley

Strategic alignment and performance of market‐seeking MNCs in China

Luo, Yadong; Park, Seung Ho
Strategic Management Journal , Volume 22 (2) – Feb 1, 2001
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Publisher
Wiley
Copyright
Copyright © 2001 John Wiley & Sons, Ltd.
ISSN
0143-2095
eISSN
1097-0266
DOI
10.1002/1097-0266(200101)22:2<141::AID-SMJ151>3.0.CO;2-O
Publisher site
See Article on Publisher Site

Abstract

This study explores the environment–strategy–performance relation of foreign firms, especially those with a market‐seeking mandate, in China. The results indicate that the Analyzer orientation is best suited to the turbulent Chinese market, which has been undergoing an economic transition in recent years. There is also a significant difference in financial performance among market‐seeking MNCs depending on strategic orientations, with the Analyzer orientation producing the highest performance. The Prospector and the Defender orientations lead to poor financial performance because of the mismatch with China's market, which is highly dynamic and complex. Our findings reiterate the importance of understanding local market traits and opportunities and developing proper strategic configurations for market‐seeking MNC subsidiaries, especially in an emerging economy like China. Copyright © 2001 John Wiley & Sons, Ltd.

Journal

Strategic Management Journal – Wiley

Published: Feb 1, 2001

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