Based on a survey of the top managers in the China electronics industry, this study examined the strategy-environment-performance paradigm in a regulated economy. This study investigated in an exploratory way the relationship between perceived environ...
Based on a survey of the top managers in the China electronics industry, this study examined the strategy-environment-performance paradigm in a regulated economy. This study investigated in an exploratory way the relationship between perceived environments and strategy types, and its performance implications. The results of canonical correlation analysis showed that even in a regulated economy, firms exhibited distinctive strategies, and these strategies were significantly related to perceived environmental uncertainty. Specifically, managers' perceptions of increased environmental uncertainty were found to be negatively related to proactive strategies and positively related to defensive strategies. Although the results showed partly significant, we observed that strategies were different between high and low performance firms. Implications and the limitations of this study are discussed.