Influence Of Industrial Policies On Industrial-Structure And Performance Of Strategic Groups

The examination of external environment has been a central research topic in management.This dissertation adopted the perspectives of strategic group and analyzed the effects of industrial policies on industrial structure,strategic groups,and firms.We took the restrictive policy in China's real estate market in 2010 as a quasi-experiment,we analyzed the regulatory history of China's real estate industry.We first used paired t-test methods to examine the significant influence of the restrictive policy on industry structure,industry performance,and performance of strategic groups and firms.We then used multiple linear regression methods and tested the effects of changes of industrial structure on firm performance with a five-year panel data during 2009-2013.We conclude on the innovative findings.First,we selected 131 listed companies in China's real estate industry as samples,and we tested the influence of industrial policies on industrial structure.The results showed as follows:the number of strategic group increased and the number of strategic groups were affected when negative industrial policies took place;the mobile rate(MR)of strategic group decreased,the mobility rate of firms increased,and the coefficients of stabilization decreased;The strategic distance between a firm and the center of its strategic group and the distance between a firm and the centers of other strategic groups reduced,and the entire industry appeared contracting movement.The result showed that industrial policies changed industrial structure.The conclusions of this paper have implications for both firms and government authorities.Second,using paired t-test,we analyzed the effects on performance of the entire industry,strategic groups,and firms before and after the initiation of restrictive policy.The performance of the entire industry decreased when negative industrial policies took place with lagged influence.The coefficients of stabilization of the strategy groups decreased when the negative industrial policies took place—the higher the coefficient of stabilization the better the performance of strategic groups.Besides,the performance change rates of strategic groups with higher coefficients of stabilization were lower than that of the strategic groups with lower coefficients of stabilization.Third,we constructed a multiple linear regression model,and used a five-year panel data from 2009 to 2013 to test the hypotheses,and discussed the effects of firms' movement from one strategic group to another on firms' performance and changing rate of performance.Firms' performance were enhanced when companies moved from the strategic group with lower coefficient of stabilization to the strategic group with lower coefficient of stabilizations,and the changing rate of company performance decreased.The strategic distance to the center of one's own strategic group decreased when the negative industrial policies took place,and the firms with smaller strategic distance had better performance and greater changing rate of performance.At the same time,average distance to the centers of other strategic groups decreased when negative industrial policies took place,and the firms with smaller distance had better performance and smaller change rate of performance.Our findings suggested that,when negative industrial policies took place,firms should adjust strategies and(re)allocate resources by pondering over environmental changes.Firms' movement toward strategic groups with higher coefficients of stabilization favored the improvement of firm performance.Proactive imitation of typical strategies of one's own strategic group and non-contradictory strategies with other strategic groups helped firms improve their performance.When encountered negative policies,firms learn from the prototypical strategies of the industry,which resulted in a mimetic trend at industry level.