The Relationship between Environmental Uncertainty and Firm Performance in Chinese Listed Manufacturing Companies: The Mediating Role of Competitive Strategy

Pu Zhao (), Raman Noordin () and Stephen Laison Sondoh ()

Asian Economic and Financial Review, 2022, vol. 12, issue 8, 636-658

Abstract: Economic globalization has brought great challenges to companies. Faced with uncertainty, appropriate strategic choice is an important means to deal with uncertainty and competitive challenges. The purpose of this research is to investigate the mediating effect of competitive strategy on the relationship between environmental uncertainty and firm performance in Chinese listed manufacturing companies. This research uses OLS regression models to test the mediating role of competitive strategy. The data used in this research are all derived from the public financial statement of listed companies from 2007 to 2019. We found that there is a mediating role of competitive strategy on the relationship between environmental uncertainty and firm performance. In addition, corporate life cycle is introduced as a moderating variable in the relationship between environmental uncertainty and competitive strategy. This study provides strong evidence to help managers in the decision-making process under environmental uncertainty and give managers more accurate advice based on the corporate life cycle of their companies.

Keywords: Environmental uncertainty; Competitive strategy; Corporate life cycle; Firm performance; Text analysis; Manufacturing listed companies. (search for similar items in EconPapers)
Date: 2022
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