Title

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

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.