Firm Growth in Transitional Economies: Three Longitudinal Cases from China, 1989-96
Organization Studies · 1997 · Volume 18 · Issue 3
DOI: 10.1177/017084069701800303
Abstract
How do firms in transitional economies such as the post-Soviet republics, East ern Europe and China achieve growth? Using three longitudinal cases con ducted over a seven-year period (1989-96) from China as an illustration, we identified a network-based strategy of growth, which features 'boundary blur ring' through developing interorganizational relationships with other firms. The firms' inability to achieve growth through generic expansion or acquisitions, two of the traditional growth strategies, is discussed. The institutional, eco nomic and cultural rationales that give rise to the strategic choice of a network- based strategy are explored.
Keywords
Descriptors: firm growth, strategy, interorganizational networks, institutional structure, transitional economies, China
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