The Effect Of Executive’s Migration On Market Entry Strategy Of The Target Company

How to make business decisions of which company should compete with? The issue has been a central topic of strategic researchers concern about. Among them, th e decision of the product or service market that company will enter in has effect on t he enterprise organizational boundaries, the competitive situation and the future per formance of critical decisions.Many studies have shown that executive team has a si gnificant impact on corporate strategy, there are also a large number of studies show n that executives’ personal characteristics will have an impact on corporate strategy. Corporate linkage exists between the director and other relations will generate enter prises strategy similarity.But generally speaking, the existing domestic executives a nd corporate strategy related research are based on higher-order theory and research from the senior management team of the population characteristics and background of the senior management team heterogeneity. The research level has some limitati ons.At present, the migration phenomenon is widespread in China’s listed companies. And now, the migration phenomenon that corporate recruit executives from other companies is quite a common practice. On this basis, weather executive migration bring the enterprise knowledge and experience to the new company’s executive team, thereby affecting the company’s strategic decision to move was discussed.This article refers to Boeker (1997) definition that the executives’movem ent between the organization (executives working for some time in A corporate and then turn to B business office phenomenon) and define it as the migration of execut ives (Executive Migration).Perspective will turn from a business enterprise to one p air, that is, from the relationship between organizations and dynamic angle to meas ure target company executives migration’s impact on strategic decisions.By measuri ng wether the target company participate in product markets which the company he/she has severed is in to measure of the target enterprise executives migration influen ce degree of strategic decisions. Studies has found that:(A) senior executives will ta ke his experience and knowledge gained in the move-out company to into the target company, the experience and knowledge will increases the possibility to enter the m arket which move-out company was in.(2) the executives migration influence degr ee of target company market entry strategy is influenced by executives’own charact eristics.(3) the executives migration influence degree of target company market ent ry strategy is influenced by move-in company executive team characteristics.The ab ove conclusion was not only supplemented theory for the higher-order theory, bu al so from a dynamic point view to measure organization’s strategic similarities which has such a relationship. Secondly, the article enrich strategic decisions related resear ch, the enterprise strategic decisions research is expanded to a new area-inter-enter prise relations, expanded the theoretical boundaries, enriched related research.Finall y, for the companies who has the relation,it is conducive for the move-in company t o understand the impact on their own.