Strategic investment, uncertainty and distribution reform in the P.R. China: Why a gradual reform strategy works
Document Type
Journal article
Source Publication
Journal of Applied Business Research
Publication Date
1996
Volume
12
Issue
3
First Page
20
Last Page
36
Abstract
A study attempts to provide an explanation to the success of the gradual reform strategy of China by showing that such a strategy can minimize the uncertainty created in the process of transition from a centrally-planned economy to a market economy. In a commitment versus flexibility game, low uncertainty motivates enterprises to adopt a strategy of pre-committing their investment which is crucial in obtaining a faster growth rate in the industry. In addition, China's successful use of market forces of competition and entry is also an important factor in the transition process.
DOI
10.19030/jabr.v12i3.5796
Print ISSN
08927626
Publisher Statement
Copyright © Journal of Applied Business Research Summer 1996
Access to external full text or publisher's version may require subscription.
Full-text Version
Publisher’s Version
Language
English
Recommended Citation
Chow, C.K.W. (1996). Strategic investment, uncertainty and distribution reform in the P.R. china: Why a gradual reform strategy works. Journal of Applied Business Research, 12(3), 20.