An empirical investigation of strategy determinants and choices in manufacturing enterprises

• Published in: Journal of manufacturing technology management Vol. 16; no. 3; pp. 282 - 301
• Main Author: Fai Pun, Kit
• Format: Journal Article
• Language: English
• Published: Bradford Emerald Group Publishing Limited 01-04-2005
• Subjects: China; Competition; Competitive advantage; Corporate strategy; Manufacturers; Manufacturing; Manufacturing industries; Market strategy; Objectives; Statistical analysis; Studies; Hong Kong China; China; Shanghai China; Manufacturing industries; Corporate strategy; China
• ISSN: 1741-038X; 1758-7786
• DOI: 10.1108/17410380510583608

Purpose - To present the main findings of a comparative study conducted in two selected Chinese cities - Hong Kong and Shanghai - on identifying and prioritising the strategy determinants and choices that govern how manufacturing enterprises compete.Design methodology approach - Attempts to acquire practitioners' views on strategy formulation efforts, strategy determinants and reactive versus proactive strategy choices in manufacturing enterprises.Findings - Based on the responses obtained from 232 Hong Kong and 85 Shanghai firms, it was found that the majority of respondents considered marketing strengths to be the most important strategy determinant, followed by corporate, operational and technology strengths. Product service quality and company's reputation were the two leading strategy components that would help gain, attract and retain customers. Many respondents also stressed the importance of management commitment, controlling costs of production operations, and R&D and innovation capabilities. Despite some exceptions, the hypothesis-testing results verified that there has been a positive causal relationship between the four strategy determinants and the adoption of reactive and proactive strategies.Originality value - By complementing the literature base, the study provides some empirical evidence on identifying and prioritising the strategy determinants and choices for manufacturing business operations in the context of Chinese cities. It also provides a reference for future work in developing strategy-related paradigms for attaining business excellence in manufacturing enterprises.