A Study On The Integration Pattern Between Market Strategy And Non-market Strategy

As an open system, the interaction between organizational strategy and its environment has always been the core issue in organization and management field. However, so far, what the classical strategical management theory truly focused on is how the firm to affect its external environment for the purpose of gaining the sustainable advantage. Thus,the research on non-market strategy and integrated one extends validly the classical strategy management range, and furthermore, is a new trend in the strategy management field. The thesis explores firms'integration pattern between market strategy and non-market one in Chinese transitional period aiming to answer the following questions: (1) What is the influcing factors of Chinese firms'strategic integration? (2) What is the specific behavioural pattern for strategic integration? (3) What is the outcome of the implementation of firms'strategic integration? (4) Is there siginificant differences for integrational pattern among different industrial environments?Firstly, to explore the antecedents for firms'strategic integration, the thesis view political strategy as a valid cut-in point to analyze how the firms'internal resources and external environmental power influence the political strategy decision. The paper, in some degree, tests the rightness of resource-based view and indicates that firms'strategy should apply to its environmnet. Furthermore, the paper provide the praticing managers with an significant political strategy decision framework: (1) Analyzing firms'external environment in-depth firstly; (2) Exploring competitors'resource traits thoroughly; (3) Analyzing its own internal resource characteristics; (4) Deciding finally the specific political tactics for the purpose of obtaining political performance based on the political strategy chosen already.Secondly, through using resource-based view as our fundamental theory and institutional theory as a valid complementary, we provide a conception model for firm's integration between market strategy and non-market one and give it a practicing test. Through in-depth interview and big sample questionnaires investigation, some conclusion were drawn as follows: (1) In Chinese trasitional environments, the resources possessed by firms could be classified into three types which are market resources, non-market resources, and institutional resources; (2) The integration pattern exists three kinds as well, which are strategic synergy, strategic interaction, and issue integration. Strategic synergy is the core of the strategic integration and we figured out that strategy interaction and issue integration would have a positive influence upon strategy synergy significantly; (3) The performance dimensions include not only market performance, also non-market one (such as legitimacy), and we found that, on the way to seek market performance, firms should not sacrifice its legitimacy, which would finally affect its long-term health and development.Then, the thesis chose some key companies from Chinese household appliance industry as objects and based on the method of structural content analysis, explored fully competitive interaction from the perspective of market action, non-market action, and integration one. The results indicate, during the period of year 2000 ~2007, the sample firms totally implemented 972 competitive actions and the amount of market actions are 571, accounting for 58.7%; nonmarket actions 313, taking up 32.2%; synergy action 88 and the proportion is 9.05%. This outcome suggests that, though market action is the major aspect of competitive action-reaction, to truly grasp the full picture of firms'competitive interaction, the value and significance of non-market and integrated action should not be ignored.Lastly, for the purpose of fulfilling our theory insights in practice, we come up with a management model for the implementation of integration between market strategy and non-market one, in order to provide some systematical insights for the practicing managers. The model suggests: (1) Adding a mechanism for non-market issue analysis, choice and evaluation, which will paly two main roles: firstly, helping firm's focusing on some right issues and take corresponding right proactive actions; secondly, promoting firms to analyze the non-market dimensiion of its competitive environment in a proper way; (2) urging firms to pay great attention to the non-market dimension of corporate goals in the stage of setting up strategic goals; (3) When formulating and implementing the strategy, firm should not only take non-market factor into account, but market aspect. That is to say, firm's strategy should include both market and non-market aspect, and meantime, firm's competitive action should include both market and non-market action.