A Study On The Relationship Between Political Association, Strategic Change And Enterprise Performance

Environment change has become more and more intensified,and this makes theenterprises’ pressure of survival and development becoming more serious.It is thebiggest problem for current managers to find the appropriate developing strategy toclear the direction of the enterprise’s development in the external environment whichcomplexity become more and more serious.As the general policy of enterprise’sinternal management,strategy determines the work of every functions and the specifictactics directly.In the practice of enterprise management,strategy falls in the core ofenterprise development, influences and determines the performance of the enterprisemanagement.However,with the intensification of environmental change,enterprise’slong-standing strategy is likely to become the shackles to limit its own developmentovernight.Due to the influence of external environmental change and the restrictionand constrains of its own resource conditions,the enterprise will be in a series ofadverse symptoms such as the sluggish market,low profitability,low internalefficiency and so on.At the this time,the enterprise needs to make a strategic changeproperly according to the particular case of external environmental change.Besidesadapting to the environment,enterprise would find the correct direction of its own inthe next step at the same time.The enterprise’s purpose of strategic changing is to adapt to the change ofexternal environment much better,and achieve better development. As a teansitioneconomics,China’s laws and regulations is still not perfect,and as the regulator ofmacro environment,the government has a direct impact on the external environmentof enterprises through putting forward and modifying various policies.Thus,to acquirepolitical association for enterprises’ development in order to build a stable and goodexternal environment has became an effective measure for domestic enterprises’development.To a certain extent,enterprise’s political association also has positiveinfluence on its performance.However, enterprise also needs to pay a certain costwhich is to cooperate the social work with the government in order to get political association.And this cost affects the enterprise’s process of strategic changedirectly,which also influences its own performance in the process of strategic change.This paper adopts the method of the empirical research,takes the ShanXiLanHua coal industry group co., LTD as the research object,and analysises LanHuagroup doing strategic change’s influence on enterprise performance in the past twelveyears and studies its political association’s influence impact on enterprise performancein the process of interacting with government through investigation in thefield.Then,conbined with the survey data and the actual situation in LanHua group,wewould discuss the political association’s influence on snterprise’s strategic change andthen have effects on enterprise performance.This paper studies find:based on theanalysis of LanHua group’s specific situation,strategic change and politicalassociation both have positive effect on the improvement of enterpriseperformance,however political association would weaken strategic change’s positiveeffect on the improvement of enterprise performance.Finally,we put forward somesuggestions for managers according to the research conclusions.This article’s innovation point is to make the political association as a influencefactor of enterprise strategic change,and to study its impact on the process of strategicchange influence enterprise performance.