An empirical investigation of strategy determinants and choices in manufacturing enterprises

Abstract

PurposeTo present the main findings of a comparative study conducted in two selected Chinese cities – Hong Kong and Shanghai – on identifying and prioritising the strategy determinants and choices that govern how manufacturing enterprises compete.Design/methodology/approachAttempts to acquire practitioners' views on strategy formulation efforts, strategy determinants and reactive versus proactive strategy choices in manufacturing enterprises.FindingsBased on the responses obtained from 232 Hong Kong and 85 Shanghai firms, it was found that the majority of respondents considered marketing strengths to be the most important strategy determinant, followed by corporate, operational and technology strengths. Product/service quality and company's reputation were the two leading strategy components that would help gain, attract and retain customers. Many respondents also stressed the importance of management commitment, controlling costs of production/operations, and R&D and innovation capabilities. Despite some exceptions, the hypothesis‐testing results verified that there has been a positive causal relationship between the four strategy determinants and the adoption of reactive and proactive strategies.Originality/valueBy complementing the literature base, the study provides some empirical evidence on identifying and prioritising the strategy determinants and choices for manufacturing business operations in the context of Chinese cities. It also provides a reference for future work in developing strategy‐related paradigms for attaining business excellence in manufacturing enterprises.