From Politics to Markets: A Case Study of Chinese Firms’ Strategic Adaptation

With this study, we contribute to the literature by investigating how institutional, market, and firm factors affect an incumbent firm’s strategic adaptation in China’s transitional economy. Drawing on results from a case study of China’s telecommunications industry, we develop an integrative framework suggesting that institutional, market, and firm factors will have direct impact on strategic adaptation. More importantly, we propose that institutional and market factors will also indirectly affect firms’ strategic adaptation through changing their operational autonomy and resource contingencies. Research implications are discussed.