Enterprise Responses to Industrial Policy Adjustments Based on Resource-based Theory

Abstract

This paper employs resource-based theory to investigate the strategies adopted by enterprises in response to significant changes in industrial policies. We select China's leading education and training industry player, New Oriental Education & Technology Group, as a case study to analyze a series of resource allocation adjustments taken in response to the major industry transformation in the education sector in 2021, brought about by the introduction of the "Double Reduction" policy. Using a combination of cross-sectional and longitudinal comparative analysis, we explore the strategies for resource allocation adjustments and innovation in the face of adverse industry policies. We categorize these response measures into three stages: "immediate response - strategic adjustments - transformational innovation," and analyze the changes in resource allocation. In conclusion, we provide general strategic recommendations for enterprises to navigate industrial policy adjustments, aiming to offer reference and guidance for managing policy risks and developing core competitive capabilities.