Strategies for performance improvement in the Chinese chemical industry: Evidence from case study investigations

Abstract

Purpose

This paper sets out to explore the proposition that building competences is more effective than privatisation and restructuring to improve performance in the Chinese chemical industry.

Design/methodology/approach

Case study research has been undertaken in the Chinese chemical industry. The two case companies provide representative data on the factors under investigation. The case investigations that are described were complemented by a survey, the results of which have been reported elsewhere.

Findings

Results obtained from the research show that privatisation of Chinese state‐owned enterprises is not always an effective strategy to improve performance. In the case study companies, the development of core competences was more effective in enhancing performance.

Research limitations/implications

The research results are limited by the scope of the study, which was carried out in the Chinese chemical industry. They are also based on in‐depth case investigations in only two companies, but are supported by a large‐scale survey reported elsewhere. The results have implications for academic researchers interested in China's privatisation programme.

Practical implications

The research has practical implications for companies outside China that are considering collaborative operations with Chinese companies or investing in joint ventures. It also has implications for suppliers or customers of Chinese companies.

Originality/value

The paper is based on original case study investigations carried out in Chinese enterprises and is supported by a survey of representative companies in China's chemical sector. Value is derived from understanding the basis of improved performance in the companies studied.

Citation

Cheng, J. and Bennett, D. (2006), "Strategies for performance improvement in the Chinese chemical industry: Evidence from case study investigations", Journal of Technology Management in China, Vol. 1 No. 2, pp. 190-207. https://doi.org/10.1108/17468770610670983