Firm growth in transitional economies: Three longitudinal cases from China, 1989-96

How do firms in transitional economies such as the post-Soviet republics, Eastern Europe and China achieve growth? Using three longitudinal cases conducted over a seven-year period (1989-96) from China as an illustration, we identified a network-based strategy of growth, which features 'boundary blurring' through developing interorganizational relationships with other firms. The firms' inability to achieve growth through generic expansion or acquisitions, two of the traditional growth strategies, is discussed. The institutional, economic and cultural rationales that give rise to the strategic choice of a network-based strategy are explored.