The art of value creation strategy : Evidence from a Chinese state‐owned enterprise

Purpose – This paper aims to provide a rich description of the contents and process of implementing the value creation strategy at a Chinese state‐owned company, Zhujiang Iron and Steel Company (ZISCo), and to identify the pattern of such an implementation process. Design/methodology/approach – The paper adopts a case study approach through personal reflection, 16 interviews with middle managers and employees, and collection of the company's internal documents. Findings – The steps and pattern of implementing value creation at ZISCo are identified by starting at a key function – production, then expanding to other functions. Hard issues (functional value creation activities) as well as soft issues (organisational culture and HR policies) are tackled in the implementation process. Research limitations/implications – The paper is based on a single case study, thus limiting the scope for generalising its findings. Practical issues in the implementation process are discussed, such as the identification of the leverage points and the influencing factors for creating value. Originality/value – The paper provides a rich description of value creation in a highly successful Chinese firm. It offers practical guidance for managers to enhance their organisation's competitive advantage.