Study on Competitive Dynamics and Its Association with Management Model of Chinese Horizontal Integrating Firms during the Transition Period
|School||South China University of Technology|
|Keywords||Dynamic Competition Competitive Repertoire Horizontal Integration Management Model Market fragmentation|
The current period is called an important opportunity period for Chinese firms fordeveloping to be “world-classic enterprise”. Many Chinese firms chose to engage horizontalintegrations to enhance their international competitiveness. But the special institutionalcontext in China, the market fragmentation, goes along with economic globalization to makethe competitive environment of Chinese firms more dynamic and complex. Simultaneouslyfacing multinational and local enterprises, Chinese horizontal firms have to facilities a seriesof competitive actions (repertoire) to establish integrative advantages and localresponsiveness to encourage the revenue growth. On the other hand, as an important part ofinner structure concept of a horizontal integrating firm, managerial model, which decidedunder the entire strategy, also has influence to the action decisions, especially competitiveaction decisions. For helping Chinese horizontal firms choose suitable repertoire scientificallyrely on their own managerial model under the special competing structure and institutionalcontext, this paper focus on a research problem of “under market fragmentation in transitionperiod, how should horizontal firms of different managerial models choose their competitiverepertoire to have better performance?”Applying content analysis method, this paper chose to gather data from air-conditioner,automobile, and real-estate industries. The results figures that,1) the coordination ofmanagerial model has negative moderation between complexity of repertoire and performance,and has positive moderation between deviance of repertoire and performance;2) marketfragmentation reduces all effects of competitive repertoire and managerial model toperformance;3) market fragmentation has moderation effects to the interaction betweencomplexity of repertoire and coordination of managerial model, and market fragmentation,deviance of repertoire and centralization of managerial model together have interaction effectto performance.This research, first of all, expends factors of competitive actions into managerial modeland relative concept, complimenting the analyzing framework of competitive action; secondlythis research proposed issue of type of competitors in dynamic competition, providingunderstanding of dynamics of firm competition; thirdly this paper also deeply andsystematically explore the effective mechanism of market fragmentation context tocompetitive behavior. Basing on the empirical results, this paper proposes the suitablerepertoire for each of the four basic managerial models, thus provides practical implications for Chinese horizontal firms for their managerial model and competition decision.