Management Review

›› 2019, Vol. 31 ›› Issue (1): 183-196.

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Influence of Mixed Ownership Reform on Enterprises' Strategic Flexibility——Research from Perspective of Structural Power

Zhang Shuangpeng1, Zhou Jian2,3, Zhou Feigu4   

  1. 1. School of Accounting, Shandong Technology and Business University, Yantai 264005;
    2. Business School of Nankai University, Tianjin 300071;
    3. China Academy of Corporate Governance NKU, Tianjin 300071;
    4. Twin Cities Carlson School of Management, University of Minnesota, Minneapolis 55401
  • Received:2016-08-29 Online:2019-01-28 Published:2019-01-22

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Abstract:

One of the goals for mixed ownership reform is to enhance the strategic flexibility of state-owned enterprises. The consequent change in the balance of capital power and the corporate governance power may be the key mechanism underlying the strategic change. Drawing upon 271 state-owned manufacturing companies listed in Shanghai and Shenzhen stock exchanges in the period from 2010 to 2013 and based on agency theory and upper echelon theory, the study explores mixed ownership reform's impact on the enterprises' strategic change through distinguishing ownership power and structural power. The result shows that concentration of ownership power and decreased separation of control can improve the strategic change; structural power inequality especially in board can improve the change degree. Further research finds interactions of ownership power and board structural power, board structural power and management structural power both exacerbated the positive relationship between structural power inequality and strategic change. The research shows fluctuation on ownership power structural power is the main power for strategic change impact path and by reshaping the two major powers in the mixed ownership reform, the main power changes the strategic decision making rules in the executive interactive activities.

Key words: mixed ownership reform, strategic change, ownership power, structural power