Matching entrepreneurial orientation and operations strategy for manufacturing firms in China

This study investigates the interaction between entrepreneurial orientation (EO) and efficiency/flexibility strategy (EFS) and its performance implications for manufacturing firms in China's transitional economy. Based on survey data from 208 Chinese manufacturing firms, this study uses a hierarchical multiple regression model to examine the effects of the subdimensions of EO (i.e., innovativeness, proactiveness, and risk-taking) on performance and the moderating effects of EFS on the EO-performance link. The results indicate that the subdimensions of EO facilitate the performance growth of manufacturing firms in China. In addition, an efficiency strategy combined with innovativeness drives the performance growth of manufacturing firms, whereas a flexibility strategy creates synergetic rents with proactiveness and risk-taking to improve manufacturing firm performance. This study contributes to the research on EO and operations strategy, providing a more comprehensive picture of how manufacturing firms can manage these factors in a transitional economy to increase performance.