Does Mixed-Ownership Reform Affect SOEs' Competitive Strategies?

Runsen Yuan; Chunling Li; Xiaoran Sun; Muhammad Asif Khan; Nosherwan Khaliq

doi:10.5755/j01.ee.35.5.35908

Authors

Runsen Yuan School of Economics and Management, Yanshan University, China
Chunling Li School of Economics and Management, Yanshan University, China
Xiaoran Sun School of Management, Beijing Institute of Technology, China
Muhammad Asif Khan Faculty of Management Sciences, University of Kotil, Azad Jammu and Kashmir, Pakistan
Nosherwan Khaliq School of Economics and Management, Tongji University, China

DOI:

https://doi.org/10.5755/j01.ee.35.5.35908

Keywords:

mixed-ownership reform, competitive strategy, financing constraint, risk-taking, state-owned enterprises (SOEs)

Abstract

State-owned enterprises (SOEs) are the leading force of the socialist economy, and their competitive strategy choice is the key to the high-quality development of micro-enterprises and even the national economy. This paper constructs the variables of mixed-ownership reform from shareholder power and board power and explores the impact of mixed-ownership reform on the competitive strategy of SOEs. We find that the higher the degree of SOEs' mixed-ownership reform, the greater the shareholder power and the board power held by non-state-owned shareholders, and the more inclined they are to carry out a differentiation strategy. The mechanism test shows that mixed-ownership reform eases the financing constraints and improves the risk-taking level, facilitating SOEs to choose a differentiation strategy. Further research states that the positive effect of mixed-ownership reform on differentiation strategy is more evident in SOEs with a better external institutional environment and higher internal control quality. This study enriches the relevant literature in mixed-ownership reform and strategic management, provides empirical evidence for perfecting the governance practice at the strategic level, and has certain reference value for further promoting the sustainable development of SOEs.

Author Biographies

Runsen Yuan, School of Economics and Management, Yanshan University, China

Runsen Yuan is a lecturer at School of Economics and Management, Yanshan University, China. Her research focuses on mixed-ownership reform, strategic management and technology innovation.

Chunling Li, School of Economics and Management, Yanshan University, China

Chunling Li is a professor and doctoral supervisor at Yanshan University, China. She holds a PhD at Renmin University of China. Her research focuses on behavioral finance, corporate governance and financial management. She is also the executive director of the Society of Management Science and Engineering of China.

Xiaoran Sun, School of Management, Beijing Institute of Technology, China

Xiaoran Sun is a PhD at School of Management, Beijing Institute of Technology, China. Her research focuses on accounting & finance, corporate strategy and principal-agent theory.

Muhammad Asif Khan, Faculty of Management Sciences, University of Kotil, Azad Jammu and Kashmir, Pakistan

Muhammad Asif Khan has earned his Doctoral in Finance from Huazhong University of Science and Technology, China. He is affiliated as Assistant Professor with the University of Kotli, Azad Jammu and Kashmir, Pakistan. His research focuses on the financial market, green finance, institutional quality, culture, assets pricing, economic policy uncertainty, and corporate finance. He has published more than 100 WOS/SCOPUS indexed international journals, as well as part of the editorial board and reviewer's panel.

Nosherwan Khaliq, School of Economics and Management, Tongji University, China

Nosherwan Khaliq is a post-doctoral candidate in Business administration at the School of Economics and Management, Tongji University, China. His research focuses on fintech concerning consumer behavior and sustainability