Study On The Relationship Between Competitive Strategy And Corporate Performance Of The Strategic Emerging Industries

Since Porter (1980) proposed the concept and type of the basic competitive strategy, the academic’s study interests on competitive strategy is rising.As porter didn’t explicitly point out which strategy is excellent,which make the effect of the basic competitive strategy on the corporate performance become the focus of controversy in the field of strategic management.For different industries and businesses,which kind of competitive strategy we choose can obtain better results.different studies didn’t reach the same conclusion.After the 2008 global financial crisis, countries in the world all regard the development of new industries as the core industries to promote economic growth,achieve economic revival and seize the commanding heights of the new round of international economic. Faced with the crisis,China proposed new ideas of developing "Strategic emerging industries”,and also regard it as the new direction of upgrading the domestic industrial structure, emphasizing vigorously develop strategic emerging industries Jiangsu province as one of several important provinces in China, whether its economic status, political position or strategic position in the country is important.Based on the national conditions and the province-circumstance, in order to seize the opportunity to further enhance the capability of independent innovation and competitiveness, and to achieve balanced regional development, Jiangsu issued 《the Twelfth Five-Year Plan》, determining ten key areas of development, thus emerging industries have made good progress,and have occupied the leading position in the whole country.But at the same time, intense homogeneous competition, blind investment,high product cost and low self-innovation exist,lots of new business performance are low, so as the competitiveness.In this context, putting the study on competitive strategy and corporate performance into the particular industry of Jiangsu strategic emerging industries,and seeking the best competitive strategy has a great significance for improving industrial competitiveness and overall economic strength.This paper selects Jiangsu Province in 2010-2012 total 420 listed companies effective sample, which further filter out 283 valid samples of strategic emerging industries. By exploring the overview of emerging industries, the differences between strategic and non-strategic emerging industries, as well as the differences inside,the key is to establish multiple regression.Respectively use accounting performance indicators(return on equity ROE, main operation margin MOM)and market performance indicators (Tobin’sQ) as the dependent variables, relative main business cost rate and relative R & D ratio as the independent variables to measure the low-cost and differentiation strategy. The study is focused on the impact of Porter’s competitive strategies on firm performance. The study found:First, strategic emerging industries using low-cost strategy can significantly increase above 3 corporate performance indicators. Second, the use of differentiation strategy can significantly enhance its main operation margins and market value, but can not bring the significant growth of ROE. Third, the performance impact of using low-cost strategy is significantly higher than the differentiation strategy,which means select the low-cost strategy strategy is better.This may be attributed to the fact that strategic emerging industries in Jiangsu Province generally pursuit the differentiated high innovation, easy to overlook the cost, but innovation is aloways long-term and full of risk,so in the short term (since 2010),it’s not easy to significantly increase the corporate performance.Finally,according to the findings,we put forward practical proposals for the development of strategic emerging industries in Jiangsu province.