Venturing in Turbulent Water : A Historical Perspective of Economic Reform and Entrepreneurial Transformation

This study traces the changes in organizationalenvironment and firm strategies that have taken place in China since theimplementation of economic reforms in 1978. Data from a 1990 survey of 55state-owned enterprises (SOEs) in the electronics industry, and from a 2002survey of 104 electronics SOEs, are used to examine post-reform changes in theChinese economy. Regression analyses of the data indicate that a number of"pro-entrepreneurship" changes took place between 1990 and 2002.Firms founded prior to 1990 are far more risk-averse and less innovativethan firms founded since then, and SOE managers are exhibiting a capacity tomake riskier, more innovative decisions. In general, the business environmentin China is more entrepreneurship-friendly than it was in 1978. (SAA)