Strategic fit in transitional economies: The case of China’s electronics industry

The strategic fit paradigm, originally derived from observations in market-based economies, asserts that an appropriate match between environment and strategy has significant and positive implications for business performance. Based on a random sample of Chinese electronics firms, this study systematically examines the applicability of the strategic fit paradigm in China’s centrally planned economy in transition. Results indicate that while environment-strategy coalignment is evident, coalignment only improves performance under certain environmental conditions.