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Agent as partner : enterprise-led institutional change in a Chinese prefecture

Authors Eng, Irene
Lin, Yi-Min
Issue Date 1997-09-12
Summary Existing accounts of state enterprises’ responses to China’s recent marketisation focus on the continuation of a slack strategy that perpetuates soft financial discipline. We offer a case study of an alternative strategy aimed at market opportunities and growth. This course of action entails efforts to influence the behavior of the officials interacting with the enterprise concerned. Fostering economic and political dependency is key to advancing such efforts, which may bring about important economic institutional changes. The success of the market strategy hinges on an interplay between path-dependent choice structures of pertinent officials and entrepreneurship of the enterprise leader.
Language English
Format Working paper
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