Abstract
In this study, a staged model is developed to examine the changes in organizational environment and firm strategic adaptations in the last 24 years in China. The study found that compared with 1990, in 2002, the business environment in China has become more conducive to entrepreneurial activities, and managers in state-owned enterprises (SOEs) have reacted favorably with more willingness to commit to future growth and make more innovative and risk-oriented decisions. It is also found that since 1990 newly founded firms have exhibited rather distinctively strategic orientations, compared to their counterparts from the pre-1990 era. They are far more innovative and risk oriented. Research and policy implications are discussed.
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