On what should firms focus in transitional economies? A study of the contingent value of strategic orientations in China

Abstract

This study examines the roles of strategic orientations (i.e., customer, competitor, and technology) in a transitional economy, China. On the basis of a cross-industry sample of 408 brands, we find that the effects of customer and technology orientations on business performance are contingent on the competitive environment. Specifically, as market demand becomes increasingly uncertain, the effect of a customer orientation on performance turns from positive to negative. Meanwhile, the impact of a technology orientation on performance changes from negative to positive with an increasing level of technological turbulence. However, a competitor orientation has a positive and robust effect on business performance, regardless of whether competition is low or intense. © 2007 Elsevier B.V. All rights reserved.