The growth of the firm in China: an information-processing perspective

The article examines the growth of the firm in China from an information-processing perspective. Prior work has found that Chinese firms adopt a network-based strategy by relying extensively on the development of interorganizational relationships to achieve their growth. The authors delineate a framework that links strategic choices for growth and the associated information-processing requirements. They then argue that there is a good fit between the capability of Chinese managers who are skilled at processing socially embedded “soft” information and the information-processing requirements of the network-based strategy. Three propositions drawn from this perspective are proposed, and their implications for future work are discussed