Institution, strategy, and performance: A co-evolution model in transitional China

Investigating dynamic capabilities of family businesses in China: a social capital perspective

“…In conjunction with this dynamic feature, the Chinese economy demonstrates a great level of complexity with co-existing state-owned, collective-owned, private-owned and other types of enterprises. Companies in different ownerships are treated differently by the government and the disparities between these firms are not only reflected in operational autonomy, 'but also in resource procurement, infrastructure access, and distribution arrangement' (Tan 2002b, level of legal and institutional protection, and a higher level of regulation uncertainty (Jiang et al, 2016;Peng and Zhou, 2005). This raises the question of how family businesses can survive and succeed in this complicated, hostile and dynamic environment.…”

“…The research setting of this study is a transitional economy with characteristics of dynamism, complexity and hostility (Tan and Litschert, 1994; Jiang et al , 2016; Tian et al , 2009). The Chinese economy has experienced a significant upturn after the dramatic economic paralysis between the 1950s and the 1970s.…”

“…Companies in different ownerships are treated differently by the government and the disparities between these firms are not only reflected in operational autonomy, “but also in resource procurement, infrastructure access, and distribution arrangement” (Tan, 2002b, p. 336). Private firms, though enjoying greater autonomy nowadays, have to bear a lower level of legal and institutional protection, and a higher level of regulation uncertainty (Jiang et al , 2016; Peng and Zhou, 2005). This raises the question of how family businesses can survive and succeed in this complicated, hostile and dynamic environment.…”

“…Nonetheless, due to historical reasons and its ideological stance, the Chinese economy is characterised by a great level of complexity with co-existing state-owned, collective-owned, private-owned and other types of enterprises. On the one hand, Chinese firms are operated in a highly complicated institutional environment (Jiang et al , 2016), where companies in different ownerships are treated in disparate ways by the government, with private firms being disadvantaged (Tan, 2002b). On the other hand, the transition that China is undergoing also offers opportunities (Jiang et al , 2016).…”

“…On the one hand, Chinese firms are operated in a highly complicated institutional environment (Jiang et al , 2016), where companies in different ownerships are treated in disparate ways by the government, with private firms being disadvantaged (Tan, 2002b). On the other hand, the transition that China is undergoing also offers opportunities (Jiang et al , 2016). Family businesses may benefit from this transition, since reforms in policies, regulations and legal frameworks continue to occur, aiming to promote entrepreneurial venturing.…”