Regulatory Environment and Strategic Orientations in a Transitional Economy: A Study of Chinese Private Enterprise

Abstract

This study examines characteristics of perceived political/regulatory environments and strategic orientations among Chinese private enterprises. Using a sample of fifty-three private entrepreneurs, the study found that regulatory hostility, dynamism, and complexity led to strategies characterized by innovativeness, proactiveness, and risktaking, yet discouraged future-oriented strategy. Results were compared with studies of entrepreneurs in Western economies as well as Chinese entrepreneurs in other countries. Implications are also discussed.