Relevant Regulations Embeddedness and Strategic Flexibility:
How State Ownership Affects Reconfiguration Capabilities

Yaning Xu; Moldabekova Aisulu

doi:10.70711/frim.v4i8.10025

Relevant Regulations Embeddedness and Strategic Flexibility: How State Ownership Affects Reconfiguration Capabilities

Yaning Xu, Moldabekova Aisulu

Abstract

In light of changes in the outside environment, the company needs to be more flexible; therefore, all parties involved hope that this
adaptation capability will be realized. However, it is unknown how the link between state-owned enterprises and strategic flexibility will be
implemented. State-owned enterprises (SOEs) are generally considered to be rigid, bureaucratic and Relevant regulationsly restricted; therefore, they have relatively low strategic flexibility. Based on a comparative case study of four Chinese energy SOEs (two central and two provincial) over a 12-year period (2013-2025), we have found two opposing effects of Relevant regulations embeddedness. Relevant regulations
embeddedness can provide access to resources, Institutional regulations information and regulatory protection to offer strategic flexibility (the
"enabling effect").

Keywords

Relevant regulations embeddedness; Strategic flexibility; State-owned enterprises (SOEs); Reconfiguration capabilities; China's energy sector; Central SOEs; Provincial SOEs; Enabling effect

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DOI: http://dx.doi.org/10.70711/frim.v4i8.10025

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