Decisions of Strategic Orientation under a Transitional Context: a Study of SOEs in Western China

摘要

This paper aims at examining the relationship among environmental uncertainty, strategic orientation and firm performance in SOEs located in Western areas of China. Empirical study finds there is no significant relationship between environmental uncertainty and strategic orientation apart from the positive effect of environmental complexity on risk orientation. Significantly positive relationship between firm performance and risk orientation is also found. The results indicate that Chinese SOEs still need further reform and internal differences within China should also be taken into account when decisions about strategic orientation of Chinese SOEs are to be made.