Management Review

›› 2019, Vol. 31 ›› Issue (2): 214-224.

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Who will Start Thinking about Changes in Low Performance? Comparative Analysis between Private-controlled Listed Companies and State-owned Listed Companies

Song Tiebo, Zhong Xi, Chen Weihong   

  1. School of Business Administration, South China University of Technology, Guangzhou 510640
  • Received:2016-11-16 Online:2019-02-28 Published:2019-03-07

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Abstract:

Both in theory and practice, it has always been of great importance to understand whether all enterprises would take a strategic change decision under the performance-aspiration deficit. By researching the data of A-share listed companies in China during the base years from 2008 to 2012, this paper empirically examines the impact of performance-aspiration deficit on the strategic change between private enterprises and state-owned enterprises. Meanwhile, this paper further analyzes the moderating effect of enterprise scale. Results suggest that when the actual performance below aspiration level, the larger the performance-aspiration deficit, private-controlled listed companies are more likely to choose strategic change, but state-owned listed companies are less likely to choose strategic change. Further analyses demonstrate that in the sample of private-controlled listed companies, compared with the large-scale companies, the small-scale companies are more inclined to implement strategic change when they face performance-aspiration deficit. In the sample of state-owned listed companies, compared with the large-scale companies, the small-scale companies are less inclined to implement strategic change when they face performance-aspiration deficit. So, this paper enhances the understanding on enterprise strategic change behavior, which has important implications for further promoting of the reform of state-owned enterprises.

Key words: performance aspiration deficit, corporate ownership, corporate scale, strategic change