Board Capital Choice Of Competitive Strategy And Business Performance

With the continuous growth of China’s economic level, the continuous improvement of the market mechanism, China’s companies have gradually embarked on an international track. Rising degree of internationalization of the company is facing a more complex and ever-changing external environment, the diversity of business types, different customer groups. In the face of increasingly fierce competition, enterprises make appropriate competitive strategies to create competitive advantage to achieve sustainable development. Our review of the literature found that based on the agency theory and resource dependence theory, the board will just in the business process management provides guidance and supervision of the strategy is used to get the right execution(Hillman & Dalziel, 2003). Board of directors use their social contacts, knowledge, skills and professional experience to provide advice and recommendations to managers,and managers rely on guidance of the board of directors to choose different competitive strategies so as to more direct impact on firm performance.This paper integrates the existing theory, constructs the model, improves the existing board capital logic architecture, studies board capital on business performance impact through the choice of competitive strategy of intermediary role. Through empirical analysis of 2010 to 2014 5 years of China’s manufacturing industry listing Corporation data. This paper draws the following conclusions: first, the differentiation strategy is the heterogeneity of board capital intermediary bridge to improve enterprise performance,a variety of configuration of board capital can promote the effect of impact on corporate performance, the board of directors from different industries or with industry experience can help the company expand vision. From the industry limitations, best practice to let the company know the competition in other industries, and the economic situation, which is more inclined to choose the differentiation strategy to improve the performance of enterprises; secondly, has a strong the embeddedness of board capital enterprise more easily through the path of low cost strategy to improve the performance of enterprises, such enterprises indirectly with suppliers, customers and other senior managers more closely, they understand the industry more The overall situation, pay more attention to the company’s market competitiveness and operating conditions, with high visibility, can get the good and cheap supply channels and other related information, for buyers andsuppliers bargaining power is relatively high, in the face of more suppliers and customers, are more likely to lower cost products successfully.