In search of a sustainable success strategy in the Chinese chemical industry

The Chinese chemical industry is facing fierce competition and changing market dynamics due to the change in the country's economic policy. Its government has applied administr.ttive actions rather than simply relying on the market to address the changing dynamics. It has attempted to privatise government-owned enterprises by corporatisation coupled with industrial restructuring. This paper uses a case study of Peony Printing Ink Co Ltd, a state-owned chemical enterprise, to illustrate the effectiveness of developing internal competences to improve long-term operational performance rather than the adoption of a privatisation approach.

Success strategies in the Chinese chemical industry: a survey and case study investigations

The chemical industry in China is facing fierce competition and exposure to market forces as a result of changes in the country's economic policy. The Chinese government has applied administrative actions rather than simply relying on market forces to address the changing dynamics. It has attempted to privatise state-owned chemical enterprises (SOCEs) by corporatisation, coupled with industrial restructuring by merging individual state-owned enterprises into groups. Based on a quantitative survey in combination with case studies of two Chinese chemical enterprises, this paper concludes that in this industry building competences is more effective than privatisation and restructuring to improve performance.