Change to Survive: China's New State-Owned Enterprises

Economic reforms since the 1970s have promulgated irrevocable changes in the manner in which the Chinese state-owned enterprises (SOEs) conduct their business. The authors utilize an analytical framework comprising three levels of corporate entrepreneurship, namely, business venturing, organizational renewal, and frame-breaking to analyse the current operations in mid-sized Chinese SOEs. The result indicate that entrepreneurial activities are directed predominately at business venturing and organizational renewal. In general, the core group of senior managers is the driving force for these activities. In addition, the nature of the industry was found to mediate the entrepreneurial process. Mid-sized Chinese SOEs that have adopted an entrepreneurial orientation are becoming more market oriented, innovative and willing to assume risks. As the economic development in China continues to present a high level of uncertainty due to its political situation, partnering with mid-sized state-owned enterprises with an entrepreneurial corporate culture may offer a promising means for multinational companies to make forays into the Chinese marketplace.