PERFORMANCE MEASUREMENT AND COMPETITIVE STRATEGY DEVELOPMENT OF STATE-OWNED ENTERPRISES IN CHINA

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In the increasingly competitive market, the state-owned enterprises (SOEs) in China, which dominate the national economy, have to take actions to enhance their competitive advantages in response to the competition. On one hand, competitive advantage of a company has impacts on its performance. On the other hand, the enterprise needs to develop competitive strategies related to its goals. Therefore, the two elements interact with each other. However, most scholars only focus on one aspect to do research, which resulted in incomplete findings. This article summarizes the development process of performance measurement in China and Western countries, based on performance measurement theory, and points out the disadvantages of the performance measurement system of state-owned enterprises in China. In addition, competitive strategies of company are sorted out. On the basis of existing research results, the article built a performance measurement index system which is used as a theoretical tool for case study. Then, through theoretical analysis and case studies of the two state-owned enterprises in the civil airline industry (China Eastern Airlines Corporation and China Southern Airlines Corporation), this article comprehensively analyzes and compares performance measurement of the two companies and the industry environment, suggests relevant competitive strategies for both companies. Finally, this article sums up the research results and makes suggestions for performance improvement.