A Stakeholder View of Strategic Management in Chinese Firms
INTERNATIONAL JOURNAL OF BUSINESS STUDIES
VOL 15, NO1, JUNE 2007: pages 1 of 13
A STAKEHOLDER VIEW OF STRATEGIC MANAGEMENT IN CHINESE FIRMS
Dr Xueli Huang1 Dr Scott Gardner2 Despite the fact that China has emerged as a driving force of the world economy over the last decade, little research has been undertaken into how Chinese firms strategically manage their businesses. This paper develops a theoretical framework of strategic management in the Chinese firms through reviewing and synthesising five strategic perspectives that are relevant to the Chinese context: the Industry Structure View (ISV), Resources-Based View (RBV), Institutional View (IV), Relational View (RV), and Stakeholder View (SHV). We elaborate the relevance of the SHV in the Chinese context and its relationships with other strategic perspectives. Finally, we offer several managerial and research implications based on the theoretical framework developed. Key Words: strategic management, Chinese firms, stakeholder perspective I. INTRODUCTION
One of the most significant developments in the global economy is the re-emergence of China as a major driving force of the world economy. Since the implementation of the open-door, market-oriented policies in 1979, China has quadrupled its GDP and sustained a significant average growth rate of over 9 per cent. The foreign direct investment (FDI) in China in 2004 amounted to US$ 60 billions, making China the biggest FDI destination country over three consecutive years from 2002. Chinese organisations now compete fiercely in domestic markets, and the international trade arena, with the value of China’s international trade accounting for over 70 percent of its GDP in 2004. The Chinese have also expanded their business operations to other countries as illustrated by the recent examples such as the Levono, China’s largest Personal Computer (PC) manufacturing company, acquiring IBM’s PC division, and the unsuccessful bid of China National Offshore Oil
VOL 15, NO1, JUNE 2007: pages 1 of 13
A STAKEHOLDER VIEW OF STRATEGIC MANAGEMENT IN CHINESE FIRMS
Dr Xueli Huang1 Dr Scott Gardner2 Despite the fact that China has emerged as a driving force of the world economy over the last decade, little research has been undertaken into how Chinese firms strategically manage their businesses. This paper develops a theoretical framework of strategic management in the Chinese firms through reviewing and synthesising five strategic perspectives that are relevant to the Chinese context: the Industry Structure View (ISV), Resources-Based View (RBV), Institutional View (IV), Relational View (RV), and Stakeholder View (SHV). We elaborate the relevance of the SHV in the Chinese context and its relationships with other strategic perspectives. Finally, we offer several managerial and research implications based on the theoretical framework developed. Key Words: strategic management, Chinese firms, stakeholder perspective I. INTRODUCTION
One of the most significant developments in the global economy is the re-emergence of China as a major driving force of the world economy. Since the implementation of the open-door, market-oriented policies in 1979, China has quadrupled its GDP and sustained a significant average growth rate of over 9 per cent. The foreign direct investment (FDI) in China in 2004 amounted to US$ 60 billions, making China the biggest FDI destination country over three consecutive years from 2002. Chinese organisations now compete fiercely in domestic markets, and the international trade arena, with the value of China’s international trade accounting for over 70 percent of its GDP in 2004. The Chinese have also expanded their business operations to other countries as illustrated by the recent examples such as the Levono, China’s largest Personal Computer (PC) manufacturing company, acquiring IBM’s PC division, and the unsuccessful bid of China National Offshore Oil
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