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Transformation of State-owned Enterprises in China: A StrategicAction Model

Published online by Cambridge University Press:  02 February 2015

Runtian Jing
Affiliation:
University of Electronic Science and Technology of China, China
E. Patrick McDermott
Affiliation:
Salisbury University, USA

Abstract

Transformation is a vital challenge for Chinese state-owned enterprises(SOEs) and their top managers. To explore this increasingly important topic,we first summarize the institutional context of SOE transformation and theconflicting interests and interdependent relationships of six major actorsas inside/outside stakeholders. Based on the strategic action view ofinstitutional analysis, we emphasize the role of the change agent's level ofaspiration and political skills in transforming an SOE. Then, throughinductive case studies on the transformation of three SOEs, we address howtop managers, acting as change agents, can initiate and engage ininstitutional change through strategic actions such as negotiation,manipulation, and coercion; we also illustrate how they adopt differentactions to influence different actors. Based on the inductive results, wedevelop a theoretical model, which we refer to as the ‘strategic actionmodel’ that shows how the aspiration level, political skills, strategicactions, and change outcomes interrelate and offer insights into thestrategic action of top managers as change agents. Our most importantcontribution is revealing the interplay between the proactive role of insideactors as change agents and the enabling condition of institutionalcontext.

Type
Articles
Copyright
Copyright © International Association for Chinese Management Research 2013

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