Phase transitions and emergence of entrepreneurship: The transformation of Chinese SOEs over time
Section snippets
Executive summary
Configurational theory has been a key building block of organizational research and holds profound implications for research and practice. Configurations between features in a firm's environment and its strategic responses evolve over time. However, academic and practical understanding of this process is limited, especially in cases of discontinuous change such as the transition towards market economies. Since firms in these transitional economies have emerged to be suppliers, customers,
Transition as a dynamic process: theory and hypotheses
To start, we may consider economic transition and entrepreneurial transformation as complex adaptive systems; they are dynamic, bounded networks of diverse agents interacting nonlinearly. Dynamic refers to the continual interactions of multiple agents and resulting uncertainties, turbulence, and surprises. Bounded refers to the defining purpose or intent of the system. The “network” metaphor characterizes the multiple interconnections of the system. The multiple agents include various
Research methodology
Since large-sample firm-level data are difficult to collect in China, most existing studies have relied on case based methods. Although highly insightful for theory development, case studies are less useful when the objective of the research is theory testing. This study joins the handful of studies in China that rely on quantitative analysis of data from a relatively large sample to test theories.
Statistical analyses and results
Following the multidimensional approach of measuring environment and strategy, I generated three composite environmental variables and five strategic orientation variables. The three environmental variables are hostility, turbulence, and complexity. For strategic orientations, I included futurity, proactiveness, risk affinity, analysis, and defensiveness. These constructs were grounded in theory and have been validated.
In addition, I included a control variable, firm size. I used a 5-point
Discussion and conclusion
Following a staged perspective of transition, this study examines changes in organizational environment and strategic decision characteristics in China. The study reveals some profound transformations in environment–strategy configuration brought about by the economic transition. The study finds that different phases of the transition process call for firms' ability to switch from one strategy to another in order to align with environmental changes. Specifically, the results suggest that,
Acknowledgements
This paper was completed while the author was a Fulbright Distinguished Professor at Nankai University in China, which provided institutional support. Research assistance from David Tan is much appreciated.
References (46)
- et al.
Introduction to the special issue: applications of complexity theory to organization science
Organization Science
(1999) An Introduction to Cybernetics
(1956)- et al.
Management in transitional economies: Chinese and Eastern European experience compared and contrasted
Journal of Applied Management Studies
(1998) - et al.
From fiefs to clans: explaining China's emergent economic order
Administrative Science Quarterly
(1996) - et al.
Organizations as adaptive systems in complex environments: the case of China
Organization Science
(1999) - et al.
The art of continuous change: linking complexity theory and time-paced evolution in relentlessly shifting organizations
Administrative Science Quarterly
(1997) - et al.
Competing on the Edge: Strategy as Structured Chaos
(1998) - et al.
The co-evolution of institutional environments and organizational strategies: the rise of family business groups in the ASEAN region
Organizational Studies
(2002) - et al.
Measuring organizational performance in the absence of objective measures: the case of the privately held firm and conglomerate business units
Strategic Management Journal
(1984) The structural transformation of American industry: an institutional account of the causes of diversification in the largest firms, 1919–1979
Revolutionary change theories: a multilevel exploration of the punctuated equilibrium paradigm
Academy of Management Review
Dragon in a Three-piece Suit: The Emergence of Capitalism in China
Some tests of the effectiveness and functional attributes of Miles and Snow's strategic types
Academy of Management Journal
Organizational environments in flux: the impact of regulatory punctuations on organizational domains, CEO succession, and performance
Organization Science
At Home in the Universe
Strategies for theorizing from process data
Academy of Management Review
Macro-varieties of capitalism and macro-varieties of strategic management in European airlines
The myopia of learning
Strategic Management Journal
Co-evolution of capabilities and industry: the evolution of mutual fund processing
Strategic Management Journal
Organizing for improvisation: the backstage story of the Vancouver jazz concert and symposium
Organization Science
The organization science jazz festival: improvisation as a metaphor for organizing
Organization Science
Environmental jolts and industry revolutions: organizational responses to discontinuous change
Strategic Management Journal
Configurational approach to organizational analysis
Academy of Management Journal
Cited by (51)
Toward an internal governance structure of China's large SOEs
2020, Journal of Asian EconomicsCreating the innovation ecosystem for renewable energy via social entrepreneurship: Insights from India
2017, Technological Forecasting and Social ChangeCitation Excerpt :Interactions among the various organizations comprising the ecosystem are critical and drive ecosystem dynamics. Prior studies using a complex systems perspective have primarily focused on the emergence of entrepreneurial ventures (Tan, 2007; Chiles et al., 2004; Lichtenstein et al., 2007). A few studies have examined order creation and ecosystems (Tapsell and Woods, 2008; Gómez-Uranga et al., 2014; Iansiti and Richards, 2006; Suurs and Hekkert, 2009).
Positioning for optimal distinctiveness: How firms manage competitive and institutional pressures under dynamic and complex environment
2024, Strategic Management JournalHow Political Ties and Green Innovation Co-evolve in China: Alignment with Institutional Development and Environmental Pollution
2023, Journal of Business EthicsMapping the evolution of entrepreneurial research themes in China: A combination analysis of co-word and critical event
2023, Asia Pacific Journal of Management